Gold Market Charts – June 2017

by BullionStar, via Gold Seek:

This monthly series analyses recent developments in the world’s largest physical gold markets such as India, China, Russia and Switzerland and features charts as diverse as Swiss gold imports and exports, Russian Federation gold reserves, Shanghai Gold Exchange physical gold withdrawals, and COMEX gold futures vault inventories. The featured charts have been created by the GOLD CHARTS R US market chart website.

Shanghai Gold Exchange (SGE) – Gold Withdrawals

Shanghai Gold Exchange (SGE) gold withdrawal data for the month of May was reported by the Exchange to have reached 138 tonnes. Note, these gold withdrawal figures refer to actual withdrawals of physical gold bars from the Exchange’s vast vault network, and are a suitable proxy for estimating Chinese wholesale gold demand.

For the year-to-date (end of May ~ Month 5), SGE gold withdrawals are now running at a cumulative 829 tonnes, which interestingly is very similar to cumulative SGE gold withdrawal totals recorded at the same point in 2016 and 2014. This suggests that total SGE gold withdrawals for the Year 2017 will be of the same magnitude as 2016 when they reached 1970 tonnes, or likewise 2014, when total withdrawals that year reached 2102 tonnes.

Chinese and Indian Gold Demand (CHINDIA)

The CHINDIA chart below is designed to show cumulative combined gold demand activity in the world’s two largest physical gold markets, China and India. To do this, the chart employs 3 components, namely SGE gold withdrawals (as a proxy of Chinese wholesale gold demand), Chinese central bank gold reserves (which have no connection with the Shanghai Gold Exchange), and Indian gold imports (since India predominantly uses gold imports to meet the nation’s gold demand). Since official Indian gold import data is released with more than 1 month’s lag, the latest CHINDIA chart reflects data as of the end of April.

During April total CHINDIA gold holdings increased by 245 tonnes. This comprised 166 tonnes flowing to the Chinese wholesale market (SGE gold withdrawals), and a net 79 tonnes of gold imports into India during April (94.5 tonnes imports and 15.6 tonnes exports). There was no reported increase in Chinese central bank gold reserves during April.

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