Gold volumes for the benchmark cash contract on the Shanghai Gold Exchange climbed to a record today, as the market re-opened after a weeklong break and lower prices lured buyers.
The volume for bullion of 99.99 percent purity exceeded 22,000 kilograms (22 metric tons), according to data compiled by Bloomberg. Prices dropped 2.8 percent to 327.25 yuan a gram ($1,630.29 an ounce) as of 5:04 p.m. Singapore time. Markets were closed last week for the Lunar New Year holiday.
“Chinese investors returned to the market today after the holiday, and the slump in gold prices in the past week provided great incentive for buying as many Chinese are still holding a bullish outlook on gold,” Qu Mingyu, a trader at Bank of China Ltd., the nation’s fourth-largest lender by assets, said by phone from Shanghai today.
Spot gold tumbled 3.4 percent last week, the worst such showing since May, as improving data from the U.S. reduced the appeal of haven assets. The metal today rebounded as much as 0.6 percent to $1,618.90 an ounce and last traded at $1,615.40.