China, the world’s largest gold consumer, refrained from gold imports from Switzerland in August, for the first time since January 2021, customs data from the world’s biggest bullion refining and transit hub showed on Thursday.
The supplies from Switzerland to China completely dried up in August, after a steady decline in June-July, as rising spot gold prices kept Asian retail buyers at bay.
“These figures came at little surprise, given exports to Greater China had already weakened in July amid slowing demand,” said Junlu Liang, senior analyst at consultancy Metals Focus.
“The fact that local gold prices on the Shanghai Gold Exchange switched to a discount to the London price in August also undermined incentives for importing gold into China.”
In the absence of shipments to China and low supplies to Hong Kong, Swiss August total gold exports fell to the lowest since June.
However, deliveries to India, the world’s second-largest gold consumer and a major importer, rose 38% month-on-month in August as the country reduced the state gold import tax to the lowest in 11 years in July.
“While Chinese demand is notably softer at these higher prices, India has been picking up the slack,” said Nicky Shiels, head of metals strategy at MKS PAMP SA.
Spot gold prices hit a record high of $2,599.92 per troy ounce on Wednesday.
(By Polina Devitt; Editing by Alex Richardson)
