CHINA May 25 2016 1:36 PM
LONDON (Scrap register): At least for now, the flow of gold seems to be shifting from Eastern to Western nations, said Commerzbank.
This is the reverse of the not-so-distant past. Analysts cited data from Swiss customs authorities showing Switzerland exported a total of 147.8 tons of gold in April, the most in three months.
However, only a little shy of one-third of this total went to key consumers China, Hong Kong and India, the bank pointed out.
“By contrast, a large amount of gold was…exported to Great Britain again last month – around 75 tons on a net basis, and thus half of total exports,” Commerzbank continued. “In other words, the flow of gold from East to West is continuing.”
“We view the current weakness of gold demand in Asia as only temporary and expect demand to pick up noticeably during the course of the year,” analysts added.