China’s net gold imports through Hong Kong surged in November, more than doubling from the previous month and marking the highest level in seven months, according to data from the Hong Kong Census and Statistics Department.
Key Details:
Import Statistics:
Net gold imports in November reached 33.074 metric tons, a 115% increase from 15.414 tons in October.
Total gold imports via Hong Kong rose by 60% to 45.22 metric tons, the highest level recorded in eight months.
China’s Position in Gold Market:
As the world’s largest gold consumer, China’s purchasing activities have a significant impact on global gold prices.
The People’s Bank of China resumed gold purchases for its reserves in November after a six-month hiatus.
Market Insights:
StoneX analyst Rhona O’Connell noted, “The People’s Bank has started reporting fresh purchases, and it could be that there has been some import for official sector purchases.”
She added that there is likely continued interest in gold bars and coins, along with some improvement in jewelry demand.
Consumer Behavior:
Recently, gold dealers in China began charging premiums for the first time in over a month as consumers started stocking up for the upcoming Lunar New Year celebrations.
Swiss Gold Exports:
Swiss gold exports increased in November, driven by a rise in supplies to India and a revival of deliveries to China and Hong Kong compared to October.
Gold Price Trends:
Spot gold has gained approximately 27% this year, reaching a record high of $2,790.15 on October 31 due to U.S. Federal Reserve interest rate easing and heightened global tensions.
However, prices fell 3% in November following a post-election sell-off triggered by Donald Trump’s victory.
Import Channels:
It is important to note that the Hong Kong data may not fully represent Chinese gold purchases, as gold is also imported through Shanghai and Beijing.