Total gold imports via Hong Kong were up about 40.2% at 63.499 tons.
Why it’s important?
China is the biggest billion consumer and its buying trends can have bearing on global prices. China’s central bank added 160,000 troy ounces of gold to its reserves in March, it said this month. China held 72.74 million ounces of gold at the end of March, from 72.58 million ounces in February.
The People’s Bank of China (PBOC), which controls the amount of gold entering the country via quotas to commercial banks, was the largest official sector buyer of gold in 2023.
Spot gold was trading around $2,328 per ounce by 1115 GMT after hitting an all-time high of $2,431.29 on April 12.
Key quote
“Consumer uncertainty over the economy is funnelling disposable income towards gold as a risk hedge,” said StoneX analyst Rhona O’Connell.
February imports were weak – reflecting the restriction on import quotas and the fact that the Lunar New Year was in February this year – but March numbers suggest a return to normal, she added.
Context
Physical gold demand in China has been robust this year due to continued currency devaluation and economic concerns.
The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing.
Elsewhere, Switzerland – the world’s biggest bullion refining and transit hub – exported higher gold supplies to China and Hong Kong in March.
(By Ashitha Shivaprasad)