Page 38 - Bullion World Volume 4 Issue 10 October 2024

P. 38

"China Halts Gold Imports

from Switzerland as India

Steps Up Demand"

In a notable shift in the global gold market, to a discount compared to those in London,
China—historically the largest consumer of further diminishing the motivation for imports.
gold—halted its imports from Switzerland
in August, marking the first such pause The repercussions of this drop in Chinese
since January 2021. Customs data from demand were evident in Switzerland's overall
Switzerland, a key hub for gold refining and gold exports, which fell to their lowest level
transit, revealed a complete cessation of since June. In contrast, India's gold imports
shipments to China during the month. This surged by 38% month-on-month in August.
trend follows a steady decline in imports over This increase coincided with a reduction in
the previous two months, as escalating gold the state import tax on gold, the lowest it has
prices discouraged buyers in Asia. The trend been in a decade. While demand in China
in declining imports was as anticipated given has softened in response to higher prices,
that exports to Greater China had already India is stepping in to fill the gap, reflecting a
weakened in July due to dwindling demand. significant shift in the dynamics of the global
Additionally, local gold prices in China shifted gold market.

Swiss gold exports to the key markets (in kgs)

Source: Swiss customs. Data subject to revision.

38
38

33 34 35 36 37 38 39 40 41 42 43