Gold declines after imports to China fall

NEW YORK (May 28) Gold (XAU/USD) is trading lower in the $2,340s on Tuesday, despite sentiment taking a negative turn (normally positive for Gold) on the back of concerns that demand in China – Gold’s largest market – might be fading. 

Gold weakens after imports to China fall

Gold imports to China via Hong Kong fell 38% in April compared to the previous month, according to data from the Hong Kong Census and Statistics Department, released on Monday. 

Net imports into the world's largest Gold consumer totaled 34.6 metric tons in April, compared to 55.8 tonnes in March, the data showed. 

Gold stored in Hong Kong International Airport accounts for the lion’s share of the Gold that is imported into mainland China. The commodity is mainly moved from one country to another principally by air so it gets stored at Hong Kong Airport before making the last leg of its journey across the border into China.

The data marks a change from the high consumption recorded in the first quarter, which showed a 5.94% rise from a year earlier, according to data from the China Gold Association (CGA). 308.91 metric tons of the precious metal were consumed in the first three months of the year, the China Daily reported. 

FXStreet