China's imports of gold slowed last month as demand in the world’s largest consumer weakened amid record-high prices. Overseas purchases of physical gold dropped to 136 tons in April, marking a 30% decline from the previous month and the lowest total for the year, according to recent customs data.
The strength in gold prices has largely been driven by robust consumption in China, where investment options are relatively limited compared to other markets. Amid challenges such as a prolonged crisis in the property sector, volatile stock markets, and a weakening yuan, investors and households have sought safer assets, boosting gold to unprecedented highs.
China's central bank has continued to increase its gold holdings for the 18th consecutive month, although the pace of acquisitions slowed in April. This move aims to diversify reserves and hedge against currency depreciation.
However, the recent decrease in demand from China may give pause to gold enthusiasts. Government warnings about excessive speculation have also dampened the metal’s appeal. The Shanghai Gold Exchange, in a bid to curb market risk, raised margin requirements on certain contracts starting Tuesday.
On the global stage, there has been a significant reduction in planned new coal capacity over the past eight years since the Paris Agreement, yet China and India, among the top emitters, have not followed this trend.
Paraphrasing text from "Reuters" all rights reserved by the original author.
