China's gold price has continued to rise compared with London's premium. Local traders said that this trend is mainly due to the government's restriction of gold imports.
According to Bloomberg News on Thursday (August 24), according to Bloomberg's assembly data, the price of gold in Shanghai on August 14th is more than $ 40 (about S $ 54) higher than London.The highest premium for many months.Although China's consumer demand is still sluggish, the price difference has been steadily expanded since the end of June.
According to traders and importers, China restricts the main factors of gold imports or the expansion of spreads.
A person familiar with the matter who requested anonymous because the news was not made public said that the Chinese government has reduced or stopped issuing import quotas to some banks.The two people familiar with the matter said that this has led to the decline in related flow in the past few months, and the affected quota is temporarily unpopular.The reason for restricting imports is unclear.
The World Gold Association pointed out in the report last week that the tightening of China's gold supply is the cause of premium, but there is no detailed explanation.
A person familiar with the matter said that although gold is still entering China, the order volume is very low.In June, non -monetary gold imports decreased by 35%month -on -month and fell to the lowest level since January.
The People's Bank of China usually issues gold import quotas to financial institutions, but the specific details of the import volume have never been disclosed publicly.
