Gold Market Charts – September 2017

by BullionStar, via Goldseek:

Featuring charts produced by the GOLD CHARTS R US market chart website, the BullionStar chart series focuses on a number of the world's most important physical gold markets including China, Russia, India, Switzerland and the London gold market, and provides background and commentary on the selected charts.

Shanghai Gold Exchange (SGE) Gold Withdrawals

Gold withdrawals from the Shanghai Gold Exchange network of precious metals vaults totalled 161.4 tonnes during August. These withdrawals are in the form of actual physical gold bars and ingots which leave the Exchange's vaults and enter the downstream investment, jewellery and fabrication markets. Since most gold flowing through the Chinese gold market from the supply side to the demand side is traded through the SGE, this makes SGE Gold Withdrawals a suitable proxy for wholesale gold demand in China. See "Mechanics of the Chinese Domestic Gold Market" for more details.

SGE Gold withdrawals: August 2017: 161.4 tonnes. Source: SGE August Data Highlights Report

SGE Gold withdrawals: August 2017: 161.4 tonnes. Source: SGE August Data Highlights Report

On a year-to-date basis for the first 8 months of 2017, total gold withdrawals from the Shanghai Gold Exchange are running at a cumulative 1290 tonnes of gold. This makes 2017's year-to-August gold withdrawals the SGE's 3rd highest year-to-date gold withdrawal total ever, somewhat less than 2013 and 2015, but on a par with 2014 and 2016. On a annualised basis, full year 2017 SGE gold withdrawals look like they will exceed 1900 tonnes.

Shanghai Gold Exchange - Gold Withdrawals (tonnes), 2008 - end August 2017. Source:www.GoldChartsRUs.com

Shanghai Gold Exchange - Gold Withdrawals (tonnes), 2008 - end August 2017. Source:www.GoldChartsRUs.com

Chinese and Indian Gold Demand (CHINDIA)

Based on latest available data, combined Chinese and Indian gold demand during July 2017 totalled 180.9 tonnes. This figure reflects 3 components, namely, Shanghai Gold Exchange (SGE) gold withdrawals, changes in Chinese central bank official gold reserves, and Indian gold imports. Indian gold imports act as a proxy for Indian gold demand given that the Indian gold market imports nearly all of its gold requirements.

The Bank of China (central bank of China) is still reporting official gold reserves of 1842 tonnes, a figure which has remained unchanged for many months now. But it is distinctly possible that the Chinese central bank has accumulated far more gold than it officially reports, and that its total gold holdings could be in excess of 4000 tonnes. See BullionStar Gold University article "PBoC Gold Purchases: Secretive Accumulation on the International Market" for more details.

China and India Gold Demand as of end of July 2017. Source:www.GoldChartsRUs.com

China and India Gold Demand as of end of July 2017. Source:www.GoldChartsRUs.com

Russian Gold Reserves

Latest figures from the Bank of Russia (the central bank of the Russian Federation) show that the Federation's official gold reserves increased by 15.6 tonnes during August 2017. Year-to-date (to end of August), the Bank of Russia has now added 130 tonnes of gold to its official reserves and these now stand at 1745 tonnes.

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