China’s net gold imports via Hong Kong fell nearly 29% in July after a sharp rise in June, Hong Kong Census and Statistics Department data showed on Thursday.
Net gold imports via Hong Kong to China, the world’s top consumer of the metal, stood at 22.056 tonnes in July compared with 30.887 tonnes in June, the data showed.
In June, China’s net gold imports via Hong Kong jumped more than 40%.
Total gold imports via Hong Kong fell in July to 26.406 tonnes from 37.226 tonnes.
“I believe that the banks (in China) are currently waiting to see if more quotas will be forthcoming,” StoneX analyst Rhona O’Connell said.
“But it looks as if supply is now more or less running in line with the medium-term average, so imports have steadied.”
China has given domestic and international banks permission to import large amounts of gold into the country, Reuters reported in April.
Meanwhile, Switzerland exported 20 tonnes of gold to mainland China in July, up from 18 tonnes in June, Swiss customs data showed.
“China imports could be volatile, but physical premiums in China have recovered. Market sentiment towards gold is strong and imports will also be strong from China in coming months,” said ANZ commodity strategist Soni Kumari.
Physical gold traded at premiums to global spot prices throughout July in China.
The Hong Kong data may not provide a complete picture of Chinese purchases because gold is also imported via Shanghai and Beijing.
Benchmark spot gold prices gained nearly 2.5% last month following a steep drop of over 7% in June, helped by fall in U.S. Treasury yields and safe-haven flows resulting from the coronavirus threat.
Photo: EPA-EFE/RUNGROJ YONGRIT
