In China, the demand for precious metal has increased over the past two months, despite the introduction of quarantine restrictions in some cities. The indicators of the withdrawal of precious metal from the Shanghai Gold Exchange in August and the volume of imports for July increased.
Recall that China is the main consumer country of gold. During August, 166 tons of gold were withdrawn from the Shanghai Gold Exchange. This is 3% more on a monthly basis and 11% more on an annual basis. According to the World Gold Council, "there is an impressive increase in demand, despite the outbreaks of the pandemic and quarantine restrictions in some cities, for example, in Sanya."
Analysts claim manufacturers are stocking up on gold ahead of the country's seasonal peak in precious metal purchases. This news demonstrates positive expectations from manufacturers for the coming months. As a rule, in October, a lot of jewelry is sold throughout the 7-day national holiday at the beginning of the month.
Recent figures on gold imports are also encouraging. Imports rose sharply, up 71 tonnes in July. On an annualized basis, the figure grew by 111 tons. The total volume of gold imports for the month amounted to 178 tons. This is the highest figure for July since 2017.