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.
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