Loading ...LONDON – With gold withdrawals from the Shanghai Gold Exchange (SGE) totalling a further 37.1 tonnes for the week ended May 29, the total for the first five months of the year has been an absolutely massive 983 tonnes – the highest total on record for the period. Withdrawals have admittedly fallen back from the high Chinese New Year figures, but they are still running strongly for the time of year. One has to assume that the half year figure will be in the region of 1,150-1,200 tonnes, which will be a record for the period.
Indian gold imports for March – the most recent month for which official figures have just become available – have also been high – at 131.5 tonnes, although admittedly this was at the tail end of the festival season and imports will likely now drop back quite sharply as is usual through the Q2/Q3 period as the monsoon season kicks in and the rural gold buyers tend to hold fire until they have a better idea of how good the rainy season, and the likely crop yield, will be. But with the high 10% import duties on gold one suspects the true figure is rather higher due to gold smuggling. True, April imports are estimated to have fallen back to 81 tonnes, but seasonal factors are kicking in and the pre-monsoon forecasts are not encouraging.
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