China's gold imports slow as record prices dent appeal
Gold futures pulled back Tuesday from record highs reached in the previous session but stayed above the $2,400 level on support from safe-haven interest and prospects of U.S. interest rates easing this year.
Front-month Comex gold for May delivery (XAUUSD:CUR) closed -0.5% to $2,421.70/oz, still its second highest settlement in history, while front-month May silver (XAGUSD:CUR) finished -1% to $31.868/oz.
Elsewhere, copper continued its record-breaking run-up, with front-month Comex copper for May delivery (HG1:COM) ending +0.6% higher at $5.119/oz, with analysts citing mounting supply concerns and enthusiasm sparked by the M&A activity around copper producer Anglo American.
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"More and more investors, including a lot of mainstream investors like macro funds... have missed a part of [the] rally, and are convinced by the case for gold and therefore want to participate," although the market is ripe for correction before prices could rise further, Metals Focus managing director Nikos Kavalis told Reuters.
But China lost a bit of its lust for gold last month, with demand from both investors and the central bank falling as surging prices combined with seasonal factors to dent demand.
China's overseas purchases of physical gold fell to 136 tons in April, down 30% from March and the lowest total for the year, according to the latest customs data.
China's central bank has increased its gold holdings for an 18th straight month as it diversifies its reserves, although the pace of those purchases slowed in April as well.
While gold prices are strongly influenced by U.S. interest rates, much of bullion's recent strength stems from robust consumption in China, where investment options are more limited than in other countries.
Source: https://www.msn.com