The latest gold withdrawal figures from the SGE suggest that wholesale Chinese gold demand may be picking up again well after a run of several poor months.
Author: Lawrence Williams
LONDON (MINEWEB) -
One of the depressing factors with regard to the gold price so far this year has been the reported fall-off in Chinese gold demand, although by world standards it remains pretty healthy. But there are now signs that it is beginning to pick up again. While the full year total is still not expected to match the record 2013 level a recent pick-up in withdrawals from the Shanghai Gold Exchange (SGE) suggests the lower prices may be beginning to stimulate demand again.
Koos Jansen, who is almost certainly the most consistent analyst and follower of Chinese gold demand data, has noted the pick-up and points out on www.bullionstar.com that the latest published weekly gold withdrawals from the SGE for the last two weeks in August have been 46 tonnes and 42 tonnes respectively. This is a significant jump from earlier levels and suggests the beginning of a healthy return to purchases as the final four months of the year approach.
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The miners have started 2014 very well indeed on the back of rising gold prices, so the question is; is this the real deal or another head fake? Is the bottom really in? Could there be a final capitulation just ahead of us? Will the summer doldrums take the PMs lower?
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