The data published this week by the Hong Kong Statistics Authority on the Gold Trade with China confirmed the image of a very weak demand for gold in China, says Carsten Fritsch, commerzbank raw material analyst
Gold exports to China and Hong Kong stop in February
“According to the data, 26.4 more gold tons from China were delivered to Hong Kong in February than vice versa. This was mainly due to a strong increase in gold exports from China to Hong Kong, which more than doubled month by month to 41 tons, the highest level in 10 years. In contrast, the golden imports of China from Hong Kong only increased slightly after falling to its lowest level in almost three years in January.”
“Net gold exports from China to Hong Kong had already occurred in January. Previously, this had only been the case at the beginning of the Coronavirus pandemic in April and May 2020, when supply chains were interrupted at that time due to confinements. However, Net Gold Exports from China to Hong Kong almost five years ago were not even close to the level seen last month.”
“Apparently, the demand for gold in China was so weak in February that the gold merchants exported excess gold to Hong Kong and Switzerland to benefit from the highest prices in the world market. The commercial data of the Swiss customs authority had already painted a similar image the previous week. Gold exports to China and Hong Kong stopped in February to 14 tons. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
