| Cooling Chinese demand for gold has added to an increasingly gloomy global outlook for the precious metal, which slumped to a fresh four-year low on Monday. Gold prices in Shanghai normally carry a premium to global prices, but that reversed to a rare discount Monday. The premium, which is attributable to capital controls, was $2 to $3 an ounce to London prices about a week ago.
The tepid demand is especially unusual, as the premium typically rises this time of year as Chinese traders stock up on gold ahead of the Lunar New Year holiday, which is due in February. Lunar New Year is the peak gold-buying season in China. But the price move in Shanghai shows even Chinese buyers aren’t yet stepping in to buy at cheaper prices, betting that they may have further to fall...............................................Full Article: Source
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