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Gold Prices Continue To Climb in First Months of 2023

Feb 17, 2023

According to the World Gold Council’s update for February 17 2023, gold prices so far in 2023 continued their strong finish in 2022. Both the Shanghai Gold Price Benchmark PM (SHAUPM) in RMB (+2%) and the LBMA Gold Price AM in USD (+5%) extended their strength from late 2022.

At the end of 2022, the Shanghai-London gold price premium experienced a mild rebound, putting a stop to the declining trend since last October. The key was stronger gold demand during December, 2022. 

January saw 140t of gold leaving the Shanghai Gold Exchange’s (SGE) vault, the highest withdrawals during a Chinese New Year (CNY) month since 2018.

Chinese gold ETF holdings totalled 48t (US$3bn, RMB$20bn) at the end of January, the lowest since February 2020  

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The People’s Bank of China (PBoC) announced a further gold purchase in January, the third consecutive monthly increase. Its total gold reserves rose to 2,025t, 15t higher m-o-m. 

Looking ahead:
Market participants’ mounting expectations of slower interest rate rises in major markets continued to be a key driver supporting the gold price. 

The relative underperformance of the RMB gold price compared to its USD peer was mainly due to local currency strength. In January, the RMB appreciated over 2% against the dollar on a weaker dollar story and optimism over China’s reopening.

With China’s economic activities recovering some vitality during January, a local gold demand rebound may lie ahead. As we mentioned in our Gold Demand Trends, the Chinese government’s prioritisation of consumption stimuli and consumers’ record-level tendency to save could bode well for local gold consumption. Meanwhile, seasonality may also push gold demand higher in Q1.   

The World Gold Council was formed in 1987 by some of the world’s most forward-thinking mining companies. There are three core pillars to our mission in serving the gold market and its participants. Learn more about our work in each of the following areas: Improving understanding, Improving access, Improving trust.
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The WGC develops standards, expand access to gold, and tackle barriers to adoption to stimulate demand and support a vibrant and sustainable future for the gold market.  From our offices in Beijing, London, Mumbai, New York, Shanghai, and Singapore, we deliver positive impact worldwide.

For More Information:
Stephanie Cadman
World Gold Council
T +44 20 7826 4740
E  stephanie.cadman@gold.org


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