(Reuters) – China’s net gold imports via Hong Kong in December fell 84% from the previous month, dropping to their lowest since April 2022, Hong Kong Census and Statistics Department data showed on Monday.
WHY IT’S IMPORTANT
China is the world’s leading consumer of gold, and its purchasing activities can significantly influence global gold prices.
The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing.
BY THE NUMBERS
China imported a net 5.26 metric tons in December, down from 33.074 tons in November, when they hit a seven-month peak, the data showed. That compares with 5.23 tons imported in April 2022.
Total gold imports via Hong Kong were down 44.6% at 25.007 tons in December.
KEY QUOTE
“It looks as if the best answer is the simplest one, which is that physical demand for jewellery has been weak, on the back of depressed consumer sentiment and a highly competitive platinum price,” said StoneX analyst Rhona O’Connell.
CONTEXT
China’s gold consumption last year slumped 9.58% on the year to 985.31 metric tons, data from the China Gold Association showed, as high gold prices curtailed jewellery demand.
As one of the best-performing assets of 2024, bullion gained around 27% last year, the biggest annual jump since 2010, and last scaled a record high of $2,790.15 on Oct. 31. [GOL/]
Physical gold was offered at discounted prices for most of the second half of 2024, before prices flipped to a premium at the end of December, anticipating increased demand during the Chinese New Year.
China’s central bank added gold to its reserves in December for a second straight month, following a resumption in November after a six-month hiatus, official data by the People’s Bank of China (PBOC) showed.
(Reporting by Anmol Choubey and Anjana Anil in Bengaluru, additional reporting by Swati Verma; Editing by Toby Chopra)
