Spot precious metal prices were weak during the year, and prices rebounded in April

According to business news agency data, on April 30, the average price of silver market in the morning was 5321.67 yuan / kg, up 2.22% in the day, up 5.51% compared with the average price of 5061 yuan / kg in the spot market at the beginning of the month (April 1); Compared with the beginning of the year (01.01), the spot price of silver was 5550 yuan / kg, a decrease of 4.11%.

On April 30, the spot price of gold was 369 yuan / g, down 1.2% within the day, up 1.55% compared with the average price of 363.35 yuan / g in the early morning of the month (4.1); The spot price of gold was 392.70 yuan / g at the beginning of the year (01.01), down 6.04%.

Strong domestic gold consumption in the first quarter

According to WGC data, China’s consumer demand for gold increased to 286.4 tons in the first quarter of 2021, in sharp contrast to the trend of global demand for gold falling to a 13 year low. China is the largest gold consumer in the world.

Among them, more than half of China’s gold demand comes from jewelry. Jewelry demand for gold reached 191.1 tons in the first quarter, the highest level since 2015.

Domestic gold production fell in the first quarter

In the first quarter of 2021, the domestic raw material gold output was 74.44 tons, 8.19 tons lower than that in the same period of 2020, 9.92% lower than that in the same period of 2020, including 58.91 tons of gold mineral gold and 15.53 tons of non-ferrous by-product gold. Together with the gold production of imported raw materials in the first quarter, the total gold production in China was 98.43 tons, a year-on-year decrease of 7.39%.

Gold imports rose slightly in the first quarter

In the first quarter, the supply of imported gold raw materials increased steadily, and the gold production of imported raw materials was 23.99 tons, up 1.41% year on year.

Gold price stops falling in April

The sharp fall of gold in the early stage is mainly due to the high yield of us long-term treasury bonds, the continuous rise of US stock market, the positive trend of international commodities, and the weakening of speculative enthusiasm of precious metal market. In April, the price of precious metal gold began to stop falling, stabilized and recovered slightly.

Periodic warming is mainly based on two factors

First, the domestic precious metal consumer market is hot, the gold price has doubled, the market has been cut, and the demand for physical consumption has soared.

Second, in the long run, the real interest rate will remain low, the central banks of developed economies will continue to buy government debt, the industrial demand will increase, and the consumer demand for jewelry and gold and silver ware will also increase. Precious metals have the power to recover.