via CommerzbankGold climbed to a weekly high of just short of $1,590 per troy ounce yesterday, and is maintaining this level this morning. In February, China once again imported more gold from Hong Kong.
Month-on-month, imports nearly doubled to 97.1 tons according to data from the Census and Statistics Department of the Hong Kong government. Soaring 145%, the year-on-year increase was even more dramatic. Although China’s gold exports to Hong Kong have also picked up noticeably, net imports have more than doubled to 61 tons.
Alongside increased demand on account of the Chinese New Year festival that was celebrated in February and during which more gold was obviously given as gifts, the lower gold prices also served as an incentive to buy more of the yellow precious metal. Because the gold price remained at a low level in March and April, even falling somewhat further at times, China is also likely to have imported large quantities of gold in the meantime.
Market players can be expected today to focus their attention mainly on the publication this evening of the minutes of the Fed’s most recent meeting. The publications of both of the last meeting minutes had given rise to greater gold price volatility. Investors will be mainly scouring the minutes for any new indications of when “QE3” might be terminated or of any significant reduction in the bond purchasing volume. Following last week’s poor US labour market report, however, a premature end to “QE3” would appear to have become less likely.