Chinese retail demand holds firm through price highs
Shanghai Gold Exchange withdrawals suggest domestic buyers are absorbing supply even at record local prices.
Shanghai Gold Exchange withdrawals — a widely followed proxy for Chinese physical demand — remained resilient last month despite record local prices. That resilience is notable: historically, Chinese retail buyers have been price-sensitive and stepped back into rallies.
What has changed
A combination of a soft property market, capital-account frictions, and low local deposit rates has narrowed the menu of alternatives. Gold has effectively become the least-worst option for household savings.
Watch the premium
The Shanghai premium over London spot is a real-time gauge of local demand strength. A persistent premium above $20/oz indicates that domestic demand is not being fully satisfied by imports.
Precious metals correspondent covering gold, silver, and platinum group markets.
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