Standard gold quantities flowing on the largest Chinese stock exchange due to the price difference

Golden alloys in the Shanghai Stock Exchange warehouses for future contracts have jumped to the highest levels ever, in a new indication of the strength of the investment question for gold in China. More than 36 tonnes of gold is registered for delivery under future contracts, which represent about twice the amount recorded over the past month. The accumulation of shares reflects an increase in the activity of the argument, powered by a strong demand for future contracts traded at a large price allowance compared to the actual gold price in the immediate market. Traders and banks were rapidly using the price difference by buying gold at a lower price than the immediate market and delivering it to the stock exchange. From there, gold can be used to resolve sales centers under future contracts, allowing them to close their financial centers while winning profits. John Reed, the chief strategic analyst in the World Gold Council, said: “The current situation highlights the strength of the rise in gold trade in China. A large number of investors rushed to future contracts, which spurred their prices to exceed the actual price of gold, which has an opportunity for other parties to deliver the market, with the goal of the trade. The precious metal still achieves widespread profits, and utilizes the state of economic uncertainty and geopolitical turmoil. More difference in gold prices, but the gap between the markets of future and immediate contracts has expanded, powered by the low interest rates in China, which contributed to stimulating speculation among traders, while high prices – which are close to standard levels – weaken the actual demand by individual consumers. Despite the decline in the purchases of gold jewelry in the continental China by 45% on a quarterly basis, the demand for alloys and gold coins remained coherent, according to the World Gold Council report for the second quarter. Gold funds in China on the other hand, gold -returned boxes registered output flow, which is largely powered by the transformation of individual investors to the stock market. The volatile conditions have also led to unusual imbalances in other gold markets. Earlier in the year, quantities of metal in “comic books” dumped in New York to pitch gold and other precious metals amid expectations to impose US customs duties, but the trade suddenly stopped after the Trump administration released precious metals from fees.