Chinese Gold Demand Remains Stable Amid July Volatility
Despite gold's sideways price performance and increased volatility in July, Chinese gold demand remained stable, according to the World Gold Council. China is the world's largest gold market.
The gold price in yuan was virtually unchanged in July. A weaker dollar and improved investor positioning supported gold prices, while rising yields continued to create headwinds, the WGC said.
Chinese gold demand has been bifurcated, with resilient investor buying and a struggling jewelry sector. Withdrawals from the Shanghai Gold Exchange (SGE) fell by 8 percent in July, dipping to 80 tonnes.
The World Gold Council described wholesale demand as 'tepid', but noted that the decline was largely seasonal. The WGC said data indicates that physical gold investment demand was broadly unchanged from June and failed to offset the decline in jewelry demand due to high prices.