China has restricted gold imports in the past three months -report
Wed 14 Aug 2019 17:55:51 GMT Author: Adam Button |
China may be curbing the ability of residents to buy gold.
Reuters reports that China started restricting gold imports started three months ago and that has depressed imports by 300-500 tonnes; or $15-$25 billion.
This is gold-negative on the face of it. Of course, that comes at the same time as a major rally in gold, so you could argue that the market is even stronger than it appeared. Also, gold buying is a very tough thing to stop and smuggling it is relatively easy. It also becomes a bit of a forbidden fruit if the government tries to stop it.
However overall this is a negative because it could just be the start of Chinese financial repression of gold.