China is thirsty for gold again.
The world’s second-largest economy is renewing its appetite for the yellow metal as China purchased approximately 150 tons of gold, worth approximately $8.5 billion. The shipments are expected to arrive in May.
People’s Bank of China (PBoC) officials had eased restrictions on gold imports. Beijing maintains a quota system for commercial banks, and the central bank sometimes permits greater levels to satisfy local demand.
China imports most of its gold from Australia, South Africa, and Switzerland.
Is this the start of rampant acquisitions again? In 2019, imports averaged $3.5 billion per month. Last year, they averaged $600 million per month.
India, another critical market for the gold industry, posted record-breaking imports in March, totaling 160 tons of gold.
At the time of this writing, gold prices are trading at just under $1,800 per ounce.
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