GOLD NEWS

Chinese Gold Imports Tumbled on Persistent Weak Demand

Wed Aug 21 2024

The most recently released Customs data indicates that Chinese gold imports recorded significant decline during the month of July this year. The imports totalled 44.6 tons during the month, down by 24% from the month before. The imports fell to the lowest level in more than two years. It must be noted that the imports had plunged by 58% month-on-month in June this year.

The Chinese buyers postponed their gold purchases in July, mainly due to record high gold prices and sustained economic slowdown in the country. The purchases from Asian consumers and the region’s central banks have been a major driver of the gold price rally witnessed recently. The persisting economic weakness and slowdown could cap further gold price rally, industry analysts said.

The extended property crisis in China, coupled with falling local currency has made gold significantly less affordable for Chinese buyers. The buying activity in discretionary purchases of item like jewelry has been badly hit. Meantime, there has been an ongoing buying interest for gold bars and coins.

The huge fall in demand is evident from the fact that gold in Shnghai has fallen from premium to discount in July and August. It must be noted that the Chinese central bank too has not been purchasing gold for the past three months.

Source: https://www.scrapmonster.com