Gold Demand Upticks In Asia & Inflation Concerns Continue

Back in February, Switzerland exported gold to mainland China for the first time since September. Shipments also flowed into India and Thailand, which hit multi-year highs. This resurgence in demand seems to suggest that Asian gold demand is on the rise. Perhaps these markets are on the mend from the COVID-19 economic shock. Last year, Chinese, Indian, and Thai demand halted as the pandemic spread. The demand for gold actually struggled to recover the most in China, but seems to be rising once again. 

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Gold Demand In Asia

Back in August, the gold price set a new record for its all-time high price. However, there has been a subsequent decline in the gold price ever since. Most of the gold demand in Asia is for jewelry, and buyers were disillusioned from high prices. Now that the gold price is decreasing, it appears that the retail market for gold is recovering. 

Customs data from Switzerland indicate that back in February, India received about 56.6 tonnes of gold, Thailand imported 11.2 tonnes, China accepted 2 tonnes, and Hong Kong received 1 tonne. What is so significant about this is this is the largest order sent to India since April 2019. Additionally, Thailand did not receive this much since August 2018. Hong Kong also has not placed such a massive order since September. What is most important about this is India and China are among the top two gold importers, and Thailand is a regional trade hub.

This indicates that gold demand is returning, lining up with various celebrations that require gold as part of the festivities. 

Here is the official data:

SWISS TRADE DATA (KG)         

          EXPORT (kg)

  Feb-21      102,850

  Jan-21       82,033

  Feb-20       42,759

               To China   To Hong Kong    To India    To the U.S.    To  Britain

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Disclaimer: This article is not meant to serve as professional economic advice. Any action you take upon the information from this article and website is strictly at your own risk.

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