Reuters quotes five anonymous sources during the weekend news while saying, “China has given domestic and international banks permission to import large amounts of gold into the country.”
The move is cited as “potentially helping to support global gold prices after months of declines,” by the news.
The news suggests around $150 tons of gold imports or worth $85 billion will please gold buyers while also signaling the deliveries in either April alone or in April and May, per sources.
The news piece also contained one source suggesting the Chinese banks having no quota for gold imports for a while also indicating around 10 tons a month or $600 million of imports versus 75 tons or roughly $3.5 billion a month in 2019.
“India's demand for bullion has also rebounded from a pandemic-induced slump, with record-breaking imports in March of 160 tonnes of gold, an Indian government source told Reuters this month,” also said the report.
Market implications
Given China’s status as among the world’s largest gold buyers, such news favors the yellow metal bulls who recently cheered US dollar weakness. However, gold fails to keep the uptick to $1,778 during the early Monday’s trading in Asia.
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