Page 53 - Bullion World Issue 1 May 2021

Bullion World | Issue 01 | May 2021
China opens its borders to

billions of dollars of gold

imports

further if more source at one of the banks moving gold
imports to satisfy into China. The size of the shipments
demand had not signals China’s dramatic return to the
been allowed. global bullion market. Since February
2020, the country has on average
About 150 tonnes imported gold worth about $600 million
of gold worth $8.5 a month, or roughly 10 tonnes, Chinese
billion at current customs data show.
prices is likely to
China has given domestic and be shipped following the green light from In 2019, its imports ran at about $3.5
international banks permission to import Beijing, four sources said. Two said the billion a month, or roughly 75 tonnes.
large amounts of gold into the country, gold would be shipped in April and two China’s absence made little difference to
five sources familiar with the matter said, said it would arrive over April and May. gold prices early in the pandemic when
potentially helping to support global gold The bulk of China’s gold imports typically Western investors fearful of economic
prices after months of declines. comes from Australia, South Africa and catastrophe stockpiled vast amounts
Switzerland. of the safe-haven asset, pushing it to
With China’s economy rebounding a record high of $2,072.50 an ounce.
strongly since the second half of last The People’s Bank of China (PBOC), But the investor interest drifted away
year, demand for gold jewellery, bars and the country’s central bank, controls as vaccines and government stimulus
coins has recovered, driving domestic how much gold enters China through a programmes revived economic growth
prices above global benchmark rates system of quotas given to commercial and gold prices have sagged to around
and making it profitable to import bullion. banks. It usually allows metal in but $1,750 an ounce.
The local premium is now about $7 to $9 sometimes restricts flows. “We had no
an ounce, according to gold traders in quotas for a while. Now we are getting Source: https://www.mining.com
Asia, and would probably have increased them … the most since 2019,” said a

UAE reviews plans to launch standards and criteria to ensure greater
federal gold trading platform transparency and bolster the gold trade,”
he said.

Gold and jewellery is an
important sector to the UAE's
economy, with precious
metals and diamond trading
constituting a significant part
of the country’s total non-oil
exports. Gold topped the list
of commodities making up
Dubai's 2020 external trade at
Dh213 billion ($58bn), followed
by telecoms (Dh153bn),
diamonds (Dh64bn), petroleum
The UAE is reviewing plans to launch with the introduction of the UAE Good oils (Dh57bn) and jewellery
a federal platform for gold trading to Delivery Standard, a quality benchmark (Dh47bn), figures released by the
strengthen the country’s role in the for the production of high-quality gold, Dubai government last week showed.
global gold and jewellery market. state news agency Wam said. The Gold Bullion Committee's meeting
also discussed ways of boosting the
Technical plans for the platform and for The minister said that the committee has efficiency of the nation's customs outlets
establishing a comprehensive database made tangible progress in implementing to handle the expected growth in gold
of all of the main players in the country's policies aimed at bolstering gold trading trade and the prospects of accelerating
gold industry were reviewed at a meeting to ensure the development of robust co-operation with strategic partners
of the Emirates Gold Bullion Committee, legislation conducive to spurring further to address local and international
chaired by minister of state for foreign growth in the sector. “The Emirates Gold challenges.
trade Thani Al Zeyoudi. The committee Bullion Committee is determined on
also reviewed the progress being made ensuring the enforcement of international Source: https://www.thenationalnews.
com

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