China's net gold imports via main conduit Hong Kong dropped 33.5 percent in April from the previous month, data showed on Thursday, as high prices turned off buyers in the world's top consumer of the precious metal. Buying interest also slowed after imports hit a 10-month high in March.
Net gold imports fell to 74.202 tonnes from 111.647 tonnes in March, according to data emailed to Reuters by the Hong Kong Census and Statistics Department. Total gold imports slid to 81.475 tonnes in April from 116.68 tonnes in March. "I think high prices hurt gold imports. March imports were already too much. The economy in mainland China has also slowed down," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
Net gold imports by China through the port of Hong Kong more than doubled month-on-month to 111.647 tonnes in March, the most since May 2016. The price of spot gold hit a five-month peak near $1,300 an ounce in April, gaining 1.5 percent that month. China does not provide trade data on gold, and the Hong Kong figures serve as a proxy for flows to the mainland. The Hong Kong data, however, might not provide a full picture of Chinese purchases as gold is also imported via Shanghai and Beijing.