(Kitco News) - Chinese gold imports via Hong Kong jumped in June. The number increased by about 390% from the previous month, Hong Kong Census and Statistics Department data showed on July 25th. Net imports stood at 40.563 tonnes in June, compared with 8.281 tonnes in May, the data showed. Total gold imports via Hong Kong jumped nearly 208% to 43.587 tonnes.
China has continued to get to grips with the COVID-19 pandemic. Overnight a district on 1 million people in the city of Wuhan has been put back in to lockdown with strict measures being put in place. These kinds of measures have dented the economy, business confidence, and people's willingness to travel.
The price of gold moved favorably to make such a move as the yellow metal has been trading at depressed levels. Today gold is trading 0.41% higher at $1723/oz. The price bounced off the lows seen on 21st July of $1681/oz. On the higher timeframes, there is a consolidation low at $1676.91/oz and this is currently the major support to keep an eye on.
Tonight the market will receive the latest information from the U.S. Federal reserve. It is expected that the central bank will raise its key interest rate by 75bps. There are some outside bets that a 100bps hike is on the cards. The accompanying statement is also important as it could provide clues on the speed and trajectory of the future path of rates for the U.S. central bank.
