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Commerzbank: Swiss data confirm weak Asian demand but strong ETF demand for gold

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(Kitco News) - Swiss trade data confirm the view that gold demand from key Asian nations remains weak but “robust” demand from exchange-traded funds is making up for this, said Commerzbank. Data this week from the Swiss Federal Customs Administration show that Switzerland exported 131.8 metric tons of gold in April, the most since August, said analyst Carsten Fritsch. “The lion’s share went to the U.S., where a new record figure of 111.7 tons was achieved,” he continued. “By contrast, exports to Asia collapsed almost completely.” No gold was shipped to China for the second straight month, while just one kilogram went to Hong Kong and 500 kilograms to India, Fritsch said. “The record-high exports to the U.S. are probably due mainly to the robust demand for gold ETFs,” Fritsch said. “According to the World Gold Council, it was the gold ETFs listed in the U.S. that profited most of all from this in April. Shipments of gold to the Comex warehouses is likely to be another factor given that Swiss gold refineries were able to resume production in early April after a two-week interruption. In April alone, the Comex holdings more than doubled to a good 20 million ounces.”

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