China's gold market shows resilience amid currency shifts. In February, wholesale gold demand fell modestly by 5 tonnes year-over-year to 85 tonnes, supported by pre-holiday restocking and strong investment activity. Meanwhile, Chinese gold ETFs added 4.5 billion RMB in new capital, bringing total holdings to 290 tonnes. China's gold reserves continued their expansion streak, reaching 2,309 tonnes and now representing 10 percent of total foreign exchange reserves. The divergence between USD and RMB gold prices reflects currency strength, with LBMA prices rising 4.8 percent while Shanghai benchmarks declined due to RMB appreciation. Looking ahead, seasonal weakness in jewellery demand may emerge, potentially offset by rising gold prices that could support investment flows.
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