- Chinese Gold Demand Continued to Surge in February
After ending 2022 on an upward trend that continued into January, Chinese gold demand surged again in February as the economy continues to rebound from government-imposed COVID policies.
Gold withdrawals from the Shanghai Gold Exchange (SGE) totaled 169 tons in February. This is a reflection of strong wholesale demand and signals an ongoing rebound in the world’s biggest gold market. SGE withdrawals in February were up by 30 tons month-on-month and by a healthy 76 tons year-over-year. It was the strongest February for wholesale gold demand since 2014.
The World Gold Council pinpointed two primary drivers of strong demand for gold in February.
- Healthy consumption amid the economic recovery and the release of pent-up demand
- Retailers’ restocking activities after the Chinese New Year (CNY) holiday
The Shanghai-London gold price premium also continued to pick up in February, reflecting strong Chinese gold demand during the month.
After a weak first half of 2022, gold demand in China surged during the last half of the year as the government relaxed COVID restrictions. With demand rebounding last two quarters, China imported 1,343 tons of gold in 2022, the highest import level since 2018. Total gold imports for the year were up 64% over 2021.