India’s Gold demand falls; Chinese Gold demand advances
NEW YORK (Scrap Register): The latest data from the world’s two largest gold-buying nations points to soft demand in India but strong buying in China, pointed out Commerzbank.
Analysts cite data from the country’s Ministry of Finance showing that gold imports plunged by 42% year-on-year to 38.8 tons in October.
“The consumer restraint was chiefly due to the steep rise in gold prices in Indian rupees beforehand,” Commerzbank said. “Bullion dealers and jewelers are running numerous special offers in a bid to revive gold demand in India during the Dhanteras and Diwali festivals that are taking place this week.”
Meanwhile, analysts cite data from the China Gold Association showing that the country’s gold demand grew by 5.1% year-on-year to 850 tons in the first three quarters, with the organization attributing this to falling gold prices, weak stock markets, exchange-rate moves and the China-U.S. trade tensions.
The organization’s data for gold demand is significantly higher than that compiled by the World Gold Council, Commerzbank pointed out.
Meanwhile, China’s gold production decreased by 7.5% to 290 tons from January to September.
“China is filling the gap with imports – for example, from Hong Kong and Switzerland – and will also remain a major gold importer in the future,” Commerzbank noted.