Chinese gold imports via Hong Kong rocket higher
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(Kitco News) - China's net gold imports via Hong Kong have jumped 56% in October from the previous month to the highest since June 2018. This comes as buyers in the top gold consumer nation stocked up on the metal as a cushion against rising inflation according to Reuters reports.
In terms of numbers, net imports stood at 54.26 tonnes in October compared with 34.79 tonnes in September. Data from Hong Kong Census and Statistics Department data confirmed on Thursday. Total gold imports via Hong Kong rose to 57.80 tonnes from 41.88 tonnes.
Gold imports from Switzerland to mainland China in October were also higher than in any month since June 2018, customs data showed.
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China's October factory gate prices, an indicator for inflation, rose at the fastest pace since 1995, beating forecasts and further squeezing profit margins for producers grappling with soaring coal prices and other commodity costs due to the power crunch.
Net imports via Hong Kong also rose in September to hit a five-month high.
Premiums were charged on physical gold in China throughout October, a month that started with the country's Golden Week holiday.
The Hong Kong data does not provide a complete picture of Chinese purchases because gold is also imported via Shanghai and Beijing.