Major gold price divergence between Shanghai and London

As we pointed out here yesterday a part of the reasoning behind the higher SGE benchmark price levels is something of a squeeze on Chinese gold supply which is local market specific – particularly now that gold traders and fabricators may be looking to build stocks ahead of anticipated additional demand from the Chinese New Year holiday, and a reported reduction in gold import quotas by the Chinese Government to curb capital outflows.

Major gold price divergence between Shanghai and London

(Largest price divergence has been $36.23 as per my intraday charts.)