Analysts: Swiss Trade Data Suggest Gold Demand Was Soft In July
The country’s exports during the month were 115 tonnes, a year-on-year decline of 3% and the lowest July total in four years, said the consultancy Metals Focus. However, gold demand from two key nations – India and China – was mixed, said Commerzbank.
Swiss exports are closely monitored by the gold market since much of the world’s metal passes through the country or is refined there.
“The latest Swiss data confirm the ongoing weakness in physical gold demand,” Metals Focus said.
“China is a good example of a country where the local gold price, as a result of yuan weakness, has remained range-bound recently,” Metals Focus said.
Commerzbank pointed out that the Swiss data show that only 33.4 tonnes of gold were shipped to China and Hong Kong in July.
“The lowest figure in 10 months, this was not even half the previous month’s volume,” Commerzbank said. “Gold exports to India picked up, on the other hand, and at 25.1 tonnes were above average for this year.”
Still, Metals Focus said, India’s July total was still “relatively low” by historical standards.
“More importantly, this growth can partly be attributed to jewelers starting to restock for the India International Jewelry show this month and the upcoming festival season from September,” Metals Focus said. “Outside these two homes, Swiss shipments to other key physical markets were generally soft last month.”