China exported significantly more Gold to Hong Kong in February – Commerzbank
Data published this week by the Hong Kong Statistics Authority on Gold trade with China confirmed the picture of very weak demand for Gold in China, Commerzbank's commodity analyst Carsten Fritsch notes
Gold exports to China and Hong Kong come to a standstill in February
"According to the data, 26.4 tons more Gold were delivered from China to Hong Kong in February than vice versa. This was mainly due to a sharp rise in China's Gold exports to Hong Kong, which more than doubled month-on-month to 41 tons, the highest level in 10 years. In contrast, China's Gold imports from Hong Kong rose only slightly after falling to their lowest level in almost three years in January."
"Net Gold exports from China to Hong Kong had therefore already occurred in January. Previously, this was only the case at the beginning of the coronavirus pandemic in April and May 2020, as supply chains were interrupted at the time due to the lockdowns. However, China's net Gold exports to Hong Kong almost five years ago were nowhere near the level seen last month."
"Apparently, Gold demand in China was so weak in February that Gold traders exported the surplus Gold to Hong Kong and Switzerland in order to benefit from higher world market prices. Trade data from the Swiss customs authority had already painted a similar picture the previous week. Gold exports to China and Hong Kong came to a standstill in February, while Gold imports from China rose to 7 tons and from Hong Kong to 14 tons."
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FXStreet Insights Team
FXStreet
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