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China gold market update: A seasonal demand rebound in March
Gold plunged in March. The LBMA Gold Price PM in USD fell 12% in the month, weighed by rapidly cooling expectations of future Fed cuts – due to inflationary fears stemming from the Middle East war – and momentum factors as investors unwind their positions in futures, ETFs and options. The SHAUPM saw a similar pullback of 11% although a depreciating local currency limited the extent of the decline. A weak March trimmed gold’s Q1 gain. The international gold price in dollars and the Chinese benchmark in RMB both registered a 7% rise in the first quarter (Chart 1). Despite a turbulent quarter for gold, signs of ... (full story)