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China's Gold Imports From Hong Kong Hits to Lowest Level in a Year
Jul. 28, 2015 08:59AM PST
Precious Metals InvestingBloomberg reported that China’s net gold imports from Hong Kong has hit its lowest levels in almost a year, signaling that demand from the world’s largest consumer of the yellow metal may be slowing down.
Bloomberg reported that China’s net gold imports from Hong Kong has hit its lowest levels in almost a year, signaling that demand from the world’s largest consumer of the yellow metal may be slowing down.
As quoted in the market news:
Purchases less sales sank to 22.1 metric tons in June from 67.9 tons in May and 36.4 tons a year earlier, according to data compiled by Bloomberg from the Hong Kong Census and Statistics Department. That’s the smallest since July 2014.
Gold prices fell 1.5 percent last month as the U.S. Federal Reserve moved closer to raising borrowing costs for the first time since 2006. Higher rates cut the allure of bullion as the metal doesn’t pay interest or give returns like stocks and bonds. Swiss exports to China also sank in June, falling 23 percent from May. The start of the rout that wiped $4 trillion from Chinese shares may have hurt demand and buyers were probably also concerned about prospects for more price declines.
Bullion plunged the most in two years on July 20, sliding to the lowest since 2010, after China’s central bank announced it had bought about 604 tons in the past six years, increasing its hoard to 1,658 tons, less than most analysts anticipated.
The mainland imported 47.9 tons from Hong Kong in June, including scrap, compared with 75.8 tons a month earlier, while exports climbed to 25.8 tons from 7.9 tons. Swiss shipments to China fell to 14 tons from 18.1 tons, according to the Swiss Federal Customs Administration.
