China’s net gold imports via Hong Kong fell 17.6% in September from August, Hong Kong Census and Statistics Department data showed on Monday.
As the world’s leading gold consumer, China’s purchasing activities can significantly influence global gold markets.
The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing.
Net imports via Hong Kong to China for September stood at 22.047 metric tons, compared with 26.746 tons in August.
China’s total gold imports via Hong Kong reached 36.275 tons in September, down 11.29% from 40.892 tons in August.
Last week in China, bullion changed hands anywhere between discounts of $20 to a premium of $8 an ounce over the global benchmark spot price.
China’s central bank added gold to its reserves in September for the eleventh straight month, official data from the People’s Bank of China (PBOC) showed.
Spot gold prices hit a record high of $4,381.21/oz on October 20, buoyed by rising bets for US rate cuts, and geopolitical and economic uncertainties, but have since fallen over 5%.
“There was an apparent slowdown in the People’s Bank of China’s (PBoC) gold buying at the end of Q3,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.
Although the pace of buying slowed, China still brought in a solid amount of gold from Hong Kong, suggesting it’s continuing to add to reserves even as “high prices is probably what caused them to slow down their purchases,” Razaqzada added.
(By Ishaan Arora; Editing by Leroy Leo)
