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China's net gold imports through Hong Kong plummet m/m in February

China's net gold imports through Hong Kong plummet m/m in February

Data from the Hong Kong Census and Statistics Department showed that China's net imports of gold via Hong Kong dropped by more than five times in February and fell below its exports, for a second month running.

Data showed that China's total imports of gold via Hong Kong rose 7.5% in February compared to January.

Why it's important

China is the largest consumer of gold in the world, and it's purchasing activity can have a significant impact on global gold prices.

Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing.

By the Numbers

The net imports from Hong Kong into China in February were -26.398 tons, compared to -4.877 tons in January.

The data revealed that China imported 14.851 tons of goods in February, compared to 13.816 tonnes in January.

KEY QUOTES

Ross Norman, an analyst independent, said: "This low import figure confirms we are witnessing some demand destruction due to these elevated gold prices. Investors are being discouraged."

CONTEXT

Gold's record rally has been fueled by the uncertainty surrounding President Donald Trump's tariffs as well as the possibility of a rate cut and renewed tensions in the Middle East. It's racked up 16 records so far in 2025. Four of those were above $3,000/oz. Jewelers in Asia, the Middle East and Europe are reporting fewer purchases of gold as people try to sell off their old coins and jewelry.

Data shows that the supply of gold to China from Switzerland completely dried up in February for the first since August.

(source: Reuters)