Data released from the Hong Kong Census and Statistics Department earlier today revealed that China imported a lot less gold in April. Indeed, China’s imports via Hong Kong fell by 21% m/m and 20% y/y to the lowest level since August last year. A fall in mainland China’s gold imports from Hong Kong in April has been more than offset by higher imports of the metal by India. The latest data show that India’s imports of gold remained strong in April. Fears of a slowdown in demand from key emerging markets are overblown, especially if Chinese equities continue to correct. “India and China are the two biggest consumers of gold, accounting for over 50% of demand. We expect demand from both countries to increase by about 10% y/y in 2015, helping the gold price to reach $1,400 per ounce.” says Capital Economics
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