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China’s gold market in August: demand improved on multiple fronts
Gold prices quoted in USD and RMB headed in different directions in August (Chart 1). Major factors including rising US Treasury yields and a strong dollar weighed on the international gold price in USD. But the Chinese currency weakness, which depreciated by 2% against the dollar in the month, led to a mild increase in the RMB gold price. August pushed the month’s average SHAUPM to RMB457/gram, a fresh record high and the seventh consecutive monthly rise. Y-t-d, the SHAUPM soared by 13%, outperforming most assets (Chart 2). Major assets’ performances during the first eight months of 2023. China’s economic ... (full story)