China ramps up gold buying
OREANDA-NEWS China shipped in more than 80 tons of gold from Switzerland last month, Bloomberg reported on Thursday, citing data from the Swiss Federal Customs Administration. The volume is reportedly more than double the June total, and eight times more than in May.
The surge in gold imports to a five-year high indicates that Chinese demand for the precious metal is picking up, after a lull due to Covid lockdowns in the country’s major cities.
“The market’s still not great, but it’s definitely a lot better than it was in April,” Nikos Kavalis, managing director at Metals Focus consultancy, explained to Bloomberg.
The report highlighted that Chinese prices for gold carry a premium of roughly $7 compared to international prices, encouraging investors in China to step up imports, which requires a state-issued license.
Global gold prices slipped below $1,700 an ounce in July from more than $2,000 earlier in the year, as rising interest rates triggered selling by Western investors.