SINGAPORE: Hong Kong's gold shipments to mainland China slid more than 30 percent on the month to 47.478 tonnes in October, the lowest since February, data from the Hong Kong Census and Statistics Department showed on Friday.
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. (www.censtatd.gov.hk)
The sharp drop in gold exports from Hong Kong did not surprise traders, who said business was slow in October.
"October's market was not great," said a Singapore-based trader, "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, she added.
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 $1,744 an ounce in October, similar to $1,745 in September, but more than $100 higher than August's average price at $1,630.
"Prices were falling in October, and perhaps people were waiting for better opportunities to acquire physical material," said Nick Trevethan, a senior commodity strategist at ANZ in Singapore.
JAN-OCT EXPORTS EXCEED 2011 TOTAL
The net gold flow from Hong Kong to China in the first ten months of the year, at 399.668 tonnes, is already 5 percent higher than last year's total.
In the first three quarters of the year, China's total consumer gold demand, at 576.9 tonnes, was slightly lower than the amount consumed in the corresponding period last year, data from the World Gold Council showed.
Gold buying is expected to improve in the last two months of the year, fed by improving seasonal demand ahead of the year-end festivals and the Lunar New Year holiday next February, traders said.
"December should be better than November as preparation for the Lunar New Year buying starts," said the Singapore-based trader.
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