Hong Kong's Gold Shipments to Mainland China Slid More Than 30% on The Month

Hong Kong's gold shipments to mainland China slid more than 30% on the month to 47.478 tonnes in October the lowest since February.

Data from the Hong Kong Census and Statistics Department showed the net gold flow in the first ten months of the year, however, exceeded the total for 2011, suggesting robust appetite for gold in the country that is vying with India to be the world's top gold consumer. The sharp drop in gold exports from Hong Kong did not surprise traders, who said business was slow in October.
gold industry
A Singapore based trader said that "October's market was not great. Prices were high and China's buying interest was low. Some importers stocked up in September in preparation for a weeklong holiday at the beginning of October, which also contributed to the dramatic fall in October exports to China.

Net gold flow to China in October dropped to 24.9 tonnes its lowest since June 2011 with gold shipments from China edging down on the month to 22.536 tonnes. The average price for spot gold stood at USD 1,744 an ounce in October, similar to USD 1,745 in September but more than USD 100 higher than August's average price at USD 1,630.

Mr Nick Trevethan senior commodity strategist at ANZ in Singapore said that "Prices were falling in October, and perhaps people were waiting for better opportunities to acquire physical material."