The Swiss customs authority recently reported a striking decline in gold exports for August, revealing no shipments to China for the first time since January 2021, according to Commerzbank’s commodity analyst, Carsten Fritsch. The data also highlights minimal shipments to Hong Kong and a nearly 60% decrease in exports to the UK.
The sharp decline in physical gold demand is attributed primarily to elevated price levels, which are discouraging buyers. While net inflows into gold ETFs were observed—almost 12 tons for US-registered ETFs and over 4 tons for those in the UK—these figures contrast with the drop in physical shipments, suggesting a shift in market dynamics.
Interestingly, gold exports to India increased by nearly 40%, likely influenced by the recent reduction of the gold import tax in the country. This indicates that while demand for physical gold is generally weak due to high prices, specific market conditions in India are driving increased imports.
Overall, the Swiss data underscores the dampening effect of high gold prices on physical demand, raising questions about future trends in the global gold market.
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