- Chinese household appetite for gold has grown over the past two months as prices soften and onshore equities lose their shine.
- Au99.99 contract volumes on the Shanghai Gold Exchange jumped to 43 million lots last week, around 430 tons and the highest level since April.
- The Au99.99 contract requires full payment and mandatory delivery, so the buying reflects physical demand rather than leveraged bets.
- Gold is testing $4,000 an ounce as Chinese household buying provides support.
Quotes
“The contract requires the full amount to be paid and mandatory delivery, so it reflects physical demand rather than leveraged bets.”