China's net gold imports stood at 39.023 metric tons in August, up 51.4 per cent from the previous month, Hong Kong Census and Statistics Department data showed. That was still below the 68.227 tons reported a year earlier.
Total gold imports via Hong Kong were up 49.6 per cent on a monthly basis at 45.237 tons, but lower than 71.855 tons in August 2022. China also saw higher gold shipments from Switzerland in August, data showed last week.
Official data showed that the People’s Bank of China extended its streak of central bank gold purchases to a tenth straight month at end-August.
Concerns from onshore financial markets and the need to hedge against yuan depreciation could have supported demand for precious metals. Retail demand for jewellery and bullion surged in August to reach the highest monthly level since March.
Physical gold prices in China were quoted between $20 and $60 an ounce over global prices in August before premiums surged to record highs of around $135 earlier this month.
While the rise had more to do with a supply squeeze caused by the government’s import restrictions, strong physical buying should keep the premium high into the fourth quarter. Imports are expected to pick up from next month.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished