Beijing: China’s net imports of gold from Hong Kong dropped for the first time in four months in a holiday-shortened October and as demand lapsed in a lean season before the New Year.
Net purchases fell to 87.8 metric tonnes from 96.6 metric tonnes in September and compares with 69 tonnes a year earlier, according to data from the Hong Kong Census and Statistics Department compiled by Bloomberg. Exports to Hong Kong increased to 19.7 tonnes from 13.7 tonnes. Mainland China doesn’t publish the data.
Lower imports from the world’s largest user may hurt bullion prices which have fallen 9.6 per cent this year amid signs the US economy may be resilient enough to weather the first interest rate increase since 2006. Financial markets in China closed for the National Day holiday between Oct. 1-7.
“Monthly imports sometime fluctuate in line with seasonal demand,” Long Ling, analyst at Industrial Futures Co, said by phone from Shanghai before the data was released. “Consumption may pick up again approaching New Year or the Chinese New Year.”
Jewellery purchases
Gold consumption in mainland China had a “visible jump” in the third quarter, gaining 7.8 per cent from a year earlier to 813.9 tonnes in the first nine months, the China Gold Association said on November 4. Stable gold prices spurred jewellery purchases while bar and coin investment returned to double-digit growth, the association said, adding that the nation remains the world’s No. 1 gold consumer in 2015.
Swiss exports of gold to China rose to 29 tonnes in October from 21.7 tons a month earlier, while shipments to Hong Kong declined to 47.3 tonnes from 59.8 tonnes, according to the Swiss Federal Customs Administration.
The metal for immediate delivery was little changed at $1,071.38 an ounce as of 5:23pm. Singapore time. Gold touched $1,064.55 on November 18, the lowest since February 2010.
