Analysts: Swiss Trade Data Suggest Gold Demand Was Soft In July
(Kitco News) - Switzerland’s trade datasuggest that as of July, demand for gold in the physical market was stillsluggish, analysts said.
The country’s exportsduring the month were 115 tonnes, a year-on-year decline of 3% and the lowestJuly total in four years, said the consultancy Metals Focus. However, gold demandfrom two key nations - India and China - was mixed, said Commerzbank.
Swiss exports are closelymonitored by the gold market since much of the world’s metal passes through thecountry or is refined there.
“The latest Swiss data confirm the ongoingweakness in physical gold demand,” Metals Focus said.
Goldprices have weakened since spring in U.S. dollar terms. However, theconsultancy explained, dollar strength meant gold prices did not always fall in localcurrency terms in many markets.
“China is a good example of a country where thelocal gold price, as a result of yuan weakness, has remained range-boundrecently,” Metals Focus said.
Commerzbank pointed out that the Swiss datashow that only 33.4 tonnes of gold were shipped to China and Hong Kong in July.
“The lowest figure in 10 months, this was noteven half the previous month’s volume,” Commerzbank said. “Gold exports toIndia picked up, on the other hand, and at 25.1 tonnes were above average forthis year.”
Still, Metals Focus said, India’s July totalwas still “relatively low” by historical standards.
“More importantly, thisgrowth can partly be attributed to jewelers starting to restock for theIndia International Jewelry show this month and the upcoming festival seasonfrom September,” Metals Focus said. “Outside these two homes, Swiss shipmentsto other key physical markets were generally soft last month.”
By Allen SykoraFor Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.