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China's net gold imports via Hong Kong in August rose more than 4 percent from July, Hong Kong Census and Statistics Department data showed on Thursday, supported by firm investment demand.
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The world's biggest gold consumer imported a net 58.491 metric tons in August, compared with 56.193 tons in July, the data showed.
"Chinese investors continue to accumulate gold as an alternative to traditional investments in property and stocks," said Ole Hansen, head of commodity strategy at Saxo Bank.
"While investors in the rest of the world are facing some headwinds from rising interest rates and surging bond yields, the opposite is the case in China where short- and long-term yields are significantly lower, reducing the opportunity cost of holding bullion."
Non-yielding gold can be less attractive to investors in a high interest rate environment.
China's total gold imports via Hong Kong were 77.137 tons in August, up more than 2 percent from July's 75.457 tons.
The Hong Kong data may not provide a complete picture of Chinese purchases, because gold is also imported via Shanghai and Beijing.
China's central bank stepped up its gold purchases for a sixth straight month in August, adding the most bullion to its reserves since October 2023 and extending its buying streak to a 22nd consecutive month, official data showed earlier this month.
China has continued to accumulate gold even as bullion prices have risen sharply this year.
"PBoC (People's Bank of China) remains a buyer but the history of numbers as published by the IMF suggests that reported PBoC holdings don’t comprise everything that’s in official hands," said Rhona O'Connell, head of market analysis at StoneX.
Spot gold gained over 10 percent in August, its strongest monthly advance since January, supported by a weaker dollar, but has fallen over 4 percent so far this month as hawkish Federal Reserve signals bolstered rate hike expectations. GOL/
Reuters
