Gold Consumption Weak Says Natixis

Global consumption of gold has been “relatively weak,” says Natixis. In a weekly commodities report, the firm notes gold has fallen 4.5% since the beginning of July while the U.S. dollar index rose by 4%. “Global consumption of gold has been relatively weak, including China and India, who both accounted (for) around half of the world’s consumption last year,” Natixis says.

The firm cites data showing that net Chinese imports from Hong Kong were down 46% year-on-year in the second quarter to 154 metric tons. The new Indian budget announced this summer did not include cuts in gold import tariffs. “Despite slight improvement, monthly gold imports have remained low,” Natixis says. The latest data indicate that during June, imports were at 57 tons, below the average of 85 tons from 2012 prior to the import increases that began in 2013.

The firm says holdings in physically backed gold exchange-traded products are neutral, but U.S. Mint gold coin sales have roughly halved to 321,000 ounces in the first eight months of 2014.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza