Mainland China bought 57 metric tons from Hong Kong in September, up from 43.7 tons in August, the data showed. The imports probably are “a monthly record” as the country imported more than 200 tons in 2010, according to Albert Cheng, managing director at the World Gold Council. China doesn’t publish gold trade data.
“The pullback in prices during September triggered buying interest,” Cheng said today by phone from Singapore. “Chinese buyers are still looking for ways to diversify their portfolio and hedge against the macro uncertainties.”
Bullion for immediate-delivery declined 11 percent in September, touching $1,532.72 an ounce on Sept. 26, the lowest since July 8. The metal traded at $1,789.35 at 4:28 p.m. in Singapore.
Gold prices may keep fluctuating at high levels because of a slow global recovery, depreciation of the U.S. dollar and the debt crisis in Europe, Xinhua News Agency reported today, citing Sun Zhaoxue, chairman of the China Gold Association.
China’s gold-bar investment demand will rise to more than 270 tons this year, almost double 141.9 tons in 2010, Sun said.
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