Before the C position in May this year, the premium and discount status of gold prices on the two major domestic exchanges relative to the theoretical RMB gold price was consistent with the strength trend of international gold prices, reflecting that domestic gold market demand can have an effective impact on the international gold market.

After position C, the trend of gold price premiums and discounts in the two major domestic exchanges is completely opposite to the trend of international gold prices:

- CD interval: Domestic gold demand is weakening, while international demand is strengthening;
- DE range: Domestic demand has strengthened, but selling pressure in the international market has increased;
- E position to date: domestic demand has weakened again, while international demand continues to strengthen.

Further comparison of the gold price information from the two major exchanges in China reveals that the premium of futures gold over spot gold has widened. This phenomenon indicates that although gold merchants have a strong willingness to destock, the corresponding investment and speculative selling pressure in the futures gold market is not significant, and the destocking process can easily reach the bottom. #BTC #