Market Nuggets
Commerzbank: Chinese Imports Shifting From Hong Kong To Switzerland
Hong Kong and Swiss trade data show that more Chinese gold imports are coming from Switzerland and less from Hong Kong than in years past, says Commerzbank. Data from the Census and Statistics Department of the Hong Kong government shows that China imported 496 tonnes of gold from Hong Kong last year, which was 21% less than the year before and the lowest level in seven years. “Having said that, China’s gold imports from Hong Kong have actually been declining for years,” Commerzbank says. “Instead, China now imports lots of gold from other countries, such as Switzerland.” Analysts cite data from the Swiss Federal Customs Administration showing that Switzerland transported 431 tonnes of gold to China last year, up 38% from the previous year). “If Swiss gold exports had not collapsed in December (both in overall terms and specifically to China), Switzerland would have closed the gap to Hong Kong as China’s leading gold supplier,” Commerzbank says. Meanwhile, Switzerland exported “only” 254 tonnes of gold to India in 2018, which was 37% less than in 2017 and the lowest amount in at least four years, Commerzbank adds.
By Allen Sykora of Kitco News; asykora@kitco.com
BMO: Gold Boosted By Softer U.S. Dollar
Tuesday January 29, 2019 08:32
Spot gold prices have hit their highest level since May as a “risk-off environment” prevails, says BMO Capital Markets. “Uncertainties surrounding Brexit and in particular U.S.-China trade talks have seen the dollar sell off aggressively over the past few sessions, supporting gold 2% higher since Friday,” the bank says. As of 8:14 a.m. EST, spot gold was $7.10 higher to $1,310.20 an ounce and peaked just above this. The euro has hit a two-week high against the dollar.
By Allen Sykora of Kitco News; asykora@kitco.com
FXTM: Gold Setup Bullish With Prices Above ‘Higher Low’
Tuesday January 29, 2019 08:32
Gold’s technical-chart pattern remains constructive as long as the market remains above a “higher low” of $1,277 an ounce, says Lukman Otunuga, research analyst at FXTM. As of 8:22 a.m. EST, spot metal was $7.40 higher to $1,310.20 an ounce. “With Brexit-related uncertainty, U.S.-China trade developments and global growth fears draining risk sentiment, gold is likely to continue glittering ahead of the FOMC [Federal Open Market Committee] statement [Wednesday],” Otunuga says. “Focusing purely on the technical picture, gold is seen attacking $1,308 in the near term and $1,324 in the medium term. This bullish setup remains active as long as prices are able to keep above the $1,277 higher low.”
