Gold prices soared to a new seven-week high, amid a decline in bonds and reports that China plans to purchase more of the precious metal in the coming months.
Following what were weeks of stagnant price fluctuations, gold has risen to the highest since February as both the US dollar and Treasures eclipse into further losses for the week. In the meantime, gold prices advanced even further on Friday, after Reuters, citing sources familiar with the matter, reported that China has granted its international and domestic banks permission to import significant amounts of bullion into the country.
China is the largest consumer of gold in the world, importing hundreds of tons of the precious metal each year. However, since the pandemic, its imports declined as Covid-19 cases spread and domestic demand fell. Now that China’s economy is on strong rebound trajectory, its demand for gold bars, coins, and jewelry has also recovered, prompting the People’s Bank of China to increase its import quotas.
Approximately 150 tonnes of gold totalling approximately $8.5 billion is expected to be shipped into the communist country, with sources noting the bullion would be shipped sometime in April or May. The majority of China’s gold imports originate from Switzerland, Australia, or South Africa.
Information for this briefing was found via Reuters. Thee author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.