China Readying Bullion-Backed Gold ETFs
China is set to introduce its first gold ETFs backed by physical bullion as early as this year, the Financial Times reports, citing the World Gold Council.
“The launch of gold ETFs in China has been hotly anticipated by some gold bulls, who believe it could trigger a new wave of demand for the precious metal,” the newspaper reports.
Eoin Treacy's view Gold bars have been available for purchase at Chinese banks and in smaller increments via deposit accounts at Chinese banks for a number of years. The introduction of an ETF while welcome is unlikely to be the panacea that some might have expected. However, it does offer an additional avenue for investment in the metal and this should help to broaden its appeal among investors.
Gold continues to pause in the region of the lower side of its 17-month range but will need to sustain a move back above $1700 to confirm a return to demand dominance. In Chinese Yuan, Gold broke below the psychological CNY10,000 level this week. On previous tests of this area since 2011, it has rallied emphatically and will need to do so again if potential for additional downside is to be countermanded.