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China's net gold imports through Hong Kong in August fell 39% compared to July

China's net gold imports through Hong Kong in August fell 39% compared to July

Hong Kong Census and Statistics Department figures released on Thursday show that China's net imports of gold via Hong Kong fell by 39.11% in August compared to July.

Why it's important

China is the largest gold buyer in the world. Its buying activities can have a significant impact on global gold markets.

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 August were 26.746 tons compared to the 43.923 tons imported via Hong Kong in July.

China's total imports of gold via Hong Kong fell by 29.85% in August from 58.296 tonnes in July.

Customs data released on Saturday showed that China's gold imports fell by 3.4% in August compared to July. Last week, dealers in China's top gold-consuming country offered discounts of between $21 and $36 per ounce compared to global benchmark spot prices The previous week, gold prices ranged between $17 and $24, a significant increase from the previous $7-$24. China's central banks added gold to their reserves in August, continuing purchases for a 10th consecutive month, according to official data.

The spot gold price hit a new record of $3,790.82 this past week.

KEY QUOTE According to StoneX analyst Rhona OConnel, the drop in net imports through Hong Kong was caused by the "continued stress" in the economy that has a negative impact on jewellery demand. She also noted that the price difference between platinum and gold jewellery had led to a partial shift in favour of platinum jewellery.

The World Platinum Investment Council has predicted that global demand for platinum jewellery will increase by 11%, to 2.2 millions troy ounces by 2025. O'Connell stated that "the weakness in offtake" has caused Shanghai gold prices to drop to a significant discount compared to prices offshore. (Reporting and editing by David Goodman in Bengaluru, Kirby Donovan.)

(source: Reuters)