Thursday, 26 March 2015 17:29
SINGAPORE: China’s gold imports from Hong Kong fell to their lowest in six months in February, data showed on Thursday, as purchases slowed in the world’s second-biggest gold consumer amid weaker prices.
Net gold imports from main conduit Hong Kong dropped to 67.575 tonnes last month, from 76.118 tonnes in January and 112.314 tonnes a year ago, according to data e-mailed to Reuters by the Hong Kong Census and Statistics Department.
The imports were the lowest for a month since August 2014.
Jewellery demand typically rises ahead of the Chinese New Year, which fell in mid-February this year, as gold is bought widely for gift-giving. It then eases after the holiday.
The slide in February suggest consumers were cautious about purchases given weakening gold prices.
Gold fell over 5 percent in February, its biggest monthly drop since September, on concerns the Federal Reserve could hike U.S. interest rates as early as June.
Prices are currently trading at their highest in more than three weeks, after a seven-day rally, on speculation that the Fed could move any rate hike back to September.
Sustained lower level of imports from China could undermine price rallies.
China does not provide official trade data on gold, and the Hong Kong figures serve as a proxy for flows to the mainland.
The Hong Kong data, however, might not provide a full picture of Chinese purchases as there are imports shipped directly through Shanghai and Beijing for which no official figures are available.
Copyright Reuters, 2015
