Hong Kong gold exports to China jump 14% in July

Mainland buyers purchased 129 tons in July.

Hong Kong’s gold exports to China increased in July as importers took advantage of local prices that were an average 2.1% higher than global markets.

Mainland buyers purchased 129 tons in July, including scrap, compared to 113 tons in June, data from the Hong Kong government showed today. Net imports, after deducting flows from China into Hong Kong, were 113 metric tons from 101 tons in June, said Bloomberg.

China’s purchases in July were 70% higher than the 75.8 tons in the same month last year, according to Hong Kong.

Gold prices that rose 18% from a 34-month low in June are attracting buyers in China, which will overtake India as the world’s top bullion consumer this year. Premiums paid by jewelers on top of spot prices on the Shanghai Gold Exchange to take physical delivery of gold were an average US$27 an ounce in China during July.

Analysts said China is seeing robust gold sales this year with high prices in China’s domestic market in July encouraging importers.

China’s total gold consumption this year may jump by 29% to reach 1,000 tons, overtaking India to become the world’s largest gold consumer, said the World Gold Council. China and India together account for more than half of the world’s gold demand.