The Swiss customs authority published its Gold export data for August, revealing a surprising halt in shipments to China—the first time since January 2021. Carsten Fritsch, a commodity analyst at Commerzbank, highlighted this significant development, noting that global demand for physical Gold has been impacted by elevated price levels.
Low Physical Gold Demand Due to High Prices
“It’s notable that there were no Gold shipments to China and only minimal exports to Hong Kong. The last time we saw this was in January 2021. Moreover, Gold exports to the United States were also almost non-existent, and shipments to the UK saw a nearly 60% decline,” Fritsch stated.
Despite this, net inflows into Gold ETFs showed positive numbers in August. According to the World Gold Council (WGC), US-registered Gold ETFs recorded inflows of nearly 12 tons, while UK-registered ETFs added over 4 tons. This trend could have suggested higher physical Gold deliveries. However, Gold exports to India saw a sharp 40% increase, likely influenced by India’s recent reduction in Gold import taxes.
High Prices Dampen Demand
The data from Switzerland underscores the dampening effect of high Gold prices on global physical Gold demand. While countries like India are seeing increased imports, regions like China, Hong Kong, and the US are witnessing a significant pullback in Gold shipments.
