According to data from the World Gold Council, China's gold imports increased by 64% year-on-year last year, the highest level since 2018.
The World Gold Council said on Wednesday that with the optimization of epidemic prevention and control measures, China's gold imports rebounded strongly in the second half of last year. A total of 1,343 mt of gold were imported throughout the year, a year-on-year increase of 64%, the highest level since 2018.
The World Gold Council pointed out that as the world's largest gold consumer, China's gold consumption rebounded strongly after the optimization of the epidemic prevention policy, with imports reaching 157 mt in December. This strong rebound continued into January this year. According to the China Gold Association, during the 15 days from the Chinese New Year to the Lantern Festival, China's gold consumption increased by 18% year-on-year.
The World Gold Council also stated that the total amount of gold withdrawn from the Shanghai Gold Exchange in January this year was 140 mt, down 25% from the same period last year. The decline was mainly affected by the CNY holiday. Affected by the Lunar New Year holiday, there were only 16 trading days in January, the lowest since 2012.
The World Gold Council optimistically predicts that if the rebound in China's gold market continues throughout 2023, it will drive overall global gold demand higher.
Specifically, the large-scale purchases by central banks, the strong investment of individual investors and the slowdown in the outflow of gold ETF funds have all contributed to the continued growth of gold demand.
Last year, global central banks purchased a total of 1,136 mt of gold, setting a new high for net purchases since 1967 and the second highest since records began in 1950.
According to data from the People's Bank of China, the People's Bank of China increased its holdings of gold by 970,000 ounces to 64.64 million ounces in December last year, increasing its holdings of gold for the second consecutive month. So far, the total gold reserves of China's central bank has exceeded 2,000 mt for the first time.
