Gold prices continue to climb, attracting strong ETF inflows, but high prices are weighing on physical demand as China’s August imports fell 3.4% month-on-month and net imports from Hong Kong dropped 39%, Commerzbank’s commodity analyst Barbara Lambrecht notes.
Rising Gold prices temper physical demand in China
“While some are drawn to the continuously rising Gold prices and Gold ETFs are seeing strong inflows (as we reported), high prices are deterring others: China’s Gold imports in August were 3.4% lower than in the previous month.”
“Net Gold imports from Hong Kong even saw a steeper drop, falling 39% to just under 27 tons compared to July. Reports suggest that Gold dealers are currently selling an ounce of Gold at discounts ranging from $21 to $36—these are the highest discounts since May 2020.”
Read the full article here
