Sharp price fall triggers surge in China gold imports
Volumes for the benchmark spot contract on the Shanghai Gold Exchange exceeded 20 tonnes every day since April 16, when prices tumbled to the lowest since August 2010. That is more than four times the daily average last year, according to exchange data.
The mainland's imports of gold from Hong Kong probably surged this month as mainlanders increased their purchases after prices fell to the lowest in more than 2-1/2 years.
Volumes for the benchmark spot contract on the Shanghai Gold Exchange exceeded 20 tonnes every day since April 16, when prices tumbled to the lowest since August 2010. That is more than four times the daily average last year, according to exchange data.
The volume reached a record 43.27 tonnes on Monday.
Gold plunged 14 per cent in two sessions to April 15 in London, the most since 1983, stoking a frenzy among coin and jewellery buyers from China to India and the United States.
Shipments to the mainland reached a record 114.405 tonnes in December, according to data from Hong Kong's Census and Statistics Department, which may release this month's data in June.
"Given that the trading volume has been so huge on the Shanghai Gold Exchange, the import volume in April should definitely reach a very high level," said Qu Mingyu, a trader at Bank of China. "Whether they will reach a record remains to be seen.