Gold Market Charts – April 2017

Posted on 1 May 2017 by BullionStar

Each month, BullionStar’s chart wrap-ups profile a series of gold market charts from the extensive GOLD CHARTS R US website. Most of the charts featured have recently been updated with the latest data from March 2017 and in some cases data from April 2017. The charts profiled have been selected as to capture the most important trends and developments currently occurring in the world’s major physical gold markets.

On the BullionStar website you will also find a large selection of dynamic charts under the BullionStar Charts menu. The data for these charts cover precious metals, major currencies, stock indices and major stocks, other commodities, and also BullionStar bullion products. The charting functionality within BullionStar’s charts allows every asset or financial instrument listed to be measured in terms of every other asset or instrument listed.

Shanghai Gold Exchange (SGE) – Gold Withdrawals

March saw 192.25 tonnes of physical gold withdrawn from the vaults of the Shanghai Gold Exchange (SGE). This is the highest monthly withdrawal total so far in 2017, surpassing February’s 179 tonne figure and January’s 184 tonne figure.

SGE gold withdrawals are a suitable proxy for Chinese Wholesale gold demand – as explained in the Mechanics of the Chinese Gold Market article on BullionStar’s website.

For Q1 2017, SGE gold withdrawals have reached a cumulative 555.25 tons, which when annualised is a staggering 2221 tonnes. A continuation of these SGE withdrawal levels for the rest of the year would result in a 20% increase from 2016’s figure, when 1970 tonnes of gold was withdrawn from the Exchange, and would be the second highest year on record after 2015, when a massive 2596 tonnes of gold flowed out of the Exchange vaults.

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Shanghai Gold Exchange – Gold Withdrawals (tonnes), 2008 – end March 2017

Chinese and Indian Gold Demand (CHINDIA)

The below ‘CHINDIA’ chart represents 3 components, namely Indian gold imports, Shanghai Gold Exchange gold withdrawals, and Chinese central bank (PBoC) gold holdings changes. These 3 components together act as a proxy for combined Indian and Chinese physical gold demand. Since the PBoC does not buy gold on the Shanghai Gold Exchange, the addition of PBoC gold holdings to the calculation will not lead to double counting.

Since Indian trade statistics are quite slow in being published, the February data for Indian gold imports is only now becoming available. Therefore the data in the latest CHINDIA chart is for February.

On a combined basis for February, Indian gold imports + SGE gold withdrawals + changes to official Chinese gold reserves totalled 271 tonnes. Net Indian gold imports for February were 77.9 tonnes. SGE gold withdrawals in February were 179.23 tonnes. Based on PBoC/SAFE data, China’s official gold reserves dropped by 14 tonnes in December, but rebounded by 14 tonnes in February (possibly due to a calculation change). This 14 tonnes was therefore added back to the CHINDIA total in February, hence the 271 tonne total.

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BullionStar