Switzerland didn’t ship any Gold to China in August – Commerzbank

FXStreet Insights Team FXStreet

The Swiss customs authority published data on Gold exports on Thursday. Swiss Gold exports in August show no supplies to China for the first time since January 2021, Commerzbank’s commodity analyst Carsten Fritsch notes.

Demand for physical Gold is low due to high price

“It was noteworthy that there were no shipments to China and only minimal shipments to Hong Kong. The last time this happened was in January 2021. Almost no Gold was shipped to the US either. There was a decline of almost 60% in shipments to the UK.”

“Net inflows into Gold ETFs in August, with US-registered Gold ETFs recording inflows of almost 12 tons and UK-registered inflows of just over 4 tons according to the WGC, would have indicated higher deliveries. On the other hand, Gold exports to India were up almost 40 percent. The significant reduction of the Gold import tax in India may have played a role here.”

“Nevertheless, the Swiss data clearly show that the high price level is having a dampening effect on the demand for physical Gold.”

Author

FXStreet Insights Team

FXStreet

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