Asian demand puts floor on gold price

Gold continued its trend lower Tuesday, but falling prices are boosting demand out of India and China, according to analysts. ...
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... lower prices are working in favor of the retail buyer in Asia, which suggests there could be a price floor in gold's recent selloff, said Commerzbank analyst Carsten Fritsch.

This is visible by looking at rising premiums in India and China. "Gold traders in India responded by demanding a premium of $2 per troy ounce on the official local price. The week before they had been forced to grant a discount of $18 per troy ounce. The higher demand is meeting with reduced supply after gold imports were postponed in anticipation of a possible cut in import tax that did not then materialise," Fritsch noted.
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In China, premiums were also raised by local sellers, Fritsch added. "Traders in China raised their price premium to $16-27 per troy ounce from $12-15 in the previous week. Jewellery retailers there are replenishing their stocks following the New Year festivities," he said Tuesday.

The rising demand points to how price-sensitive gold buyers are in the world's top two gold-consuming nations.

What this means for the global price of gold is that the overall move down could be limited, Fritsch pointed out. "Though this does not mean that they are able to drive prices significantly up, they can preclude or at least slow any further price fall," he said.
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China’s gold imports surge to record high as appetite increases, middle class seek wealth security​

• China imported a record high 1,447 tonnes of gold for non-monetary use last year, with the value increasing ninefold from three years ago to US$90 billion
• China’s middle class are seen to be attempting to preserve their dwindling fortunes caused by the property market crisis and slumping stock market

nickndfl said:

I was looking at a few 4-ducat restrikes @ 3% above spot.

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CiscoKid said:

Brother-in-law was about to pull the trigger on $10k worth of silver from one of those silver houses. They wanted nearly $40 an ounce. Talked him into going with five Maple Leaves from Apmex instead.

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Goldhedge said:

He'll thank you later!

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Chinese Wholesale Gold Demand Sets January Record​

China's Jan gold imports via HK gallop to 6-year highs on festive spirit​

nickndfl said:

If all the gold in Ft. Knox is there then it's at most a 3 year supply. If othwrs wise up about gold then it's about one year's supply.

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At least six Chinese banks have raised investment thresholds for their gold savings accounts, in an attempt to warn retail investors of potential risks amid a price rally and growing demand for the safe-haven asset.

Starting Friday the Agricultural Bank of China Ltd. increased the minimum investment to 550 yuan ($76) from 500 yuan for one of its gold deposit products, according to a March 22 notice.
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Chinese consumers are increasing their appetite for gold, seeking to protect their assets amid a volatile stock market, a depreciating yuan, and property doldrums, which analysts said would continue to boost international gold prices coupled with geopolitical uncertainties.

Consumers in China bought 308.9 tonnes (10.9 million ounces) of gold in the first quarter, representing a 5.9 per cent increase compared with the same period in 2023, according to data released by the China Gold Association on Friday.

Purchases of gold bars and coins, which largely reflect investment and hedging demand, surged by 26.8% year on year to 106.3 tonnes, while gold jewellery sales declined by 3% from a year earlier to 183.9 tonnes.

But China's domestic gold production rose by 21.2% to only 139.184 tonnes in the first three months of the year, with 53.2 tonnes produced with imported ores or materials, indicating an overreliance on overseas suppliers.
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