Shanghai Gold Premium hits multi-year high

The Shanghai Gold Exchange premium soared to multi-year highs overnight, with Commerzbank citing recent news reports that China’s government may restrict the number of import licenses and MKS (Switzerland) S.A. reporting that dollar weakness also boosted the appeal of gold.

“After opening at an onshore premium of around $22 over loco London gold, interest drove the premium as high as $28 and with it spot gold to $1,197.70, before participants took the opportunity to buy the dollar and cap any further gains,” MKS added.

Shanghai Gold Premium hits multi-year high