The China Gold Association published data on China’s Gold demand in the first three quarters yesterday, with some delay, Commerzbank’s commodity analyst Carsten Fritsch notes.
Over the 12 months, the PBoC’s Gold purchases total 40 tons.
“Demand stood at 683 tons, down 8% from the previous year. The sole reason for this was significantly weaker demand for jewelry, which fell by 32.5% to 270 tons due to sharp price increases. A recovery in jewelry demand is also unlikely in the fourth quarter, as higher taxes on the purchase of Gold jewelry will apply from November 1.”
“Demand for bars and coins reached 352 tons, exceeding the previous year’s level by 24.5% and accounting for a good half of total Gold demand during the aforementioned period. The Chinese central bank purchased Gold for the 12th consecutive month in October, as reflected in the Gold reserves reported by the PBoC for the end of last month.”
“However, at around 1 ton, purchases were once again very modest. Over the 12 months in question, the PBoC’s Gold purchases totaled 40 tons. Other central banks, such as the Polish and Kazakh central banks, have purchased significantly more Gold so far this year.”