(Bloomberg) – Gold shipments to China from Hong Kong dropped for a second month after the premium to take direct consignment declined, showing waning physical demand in the territory ready to become the biggest buyer.
Imports, after deducting flows from China into Hong Kong, were 109.4 metric tonnes in September, from 110.2 tonnes a month previous, according to Bloomberg computed results founded on facts and figures e-mailed from the Hong Kong Census and Statistics Department. Still, the amount has more than doubled to 826 tonnes in the first nine months of the year, the data display.
Gold prices fallen in September for the first decrease in three months in the middle of conjecture at the time that the U.S. government book would slow its $85 billion in monthly bond buys. The average premium that Chinese purchasers paid to take gold for direct delivery in Shanghai fell to $8.97 in September, compared with $13.57 a month previous.
Wang Weimin, an analyst at Dalian treasure Futures Co., before the announcement said “Demand alleviated a bit in September as buying into in China stayed perceptive to the gold price outlook,” also added “A smaller premium was a good sign that Chinese investment demand slowed down after more sell-offs following the gold rout in April and in June.”
Gold for direct delivery in London traded at $1,323.91 an ounce at 10:18 a.m. Beijing time. Bullion, which fallen as low as $1,180.50 an ounce on June 28, has turned down 21% this year as investors decreased holdings in exchange-traded products on prospects for an international financial recovery.