Gold has fallen slightly to $1,835 on Tuesday. Economists at Commerzbank recapitulate what the Swiss Federal Customs Administration reported today. India, with just shy of 36 tons of gold imported from Switzerland, stands out.
Robust gold demand in India
“As the Swiss Federal Customs Administration has reported, Switzerland exported a good 105 tons of gold in May. Less than half of this total went to China and India.”
“At 10 tons, gold exports to China were the lowest in 14 months. This may well be related to the coronavirus lockdowns that had severely restricted public life.”
“India imported just shy of 36 tons of gold from Switzerland – the highest figure in six months. The gold price in Indian rupees had dropped sharply from mid-April to mid-May, apparently prompting Indians to buy gold. The Indian central bank had already reported gold imports of more than 100 tons in May.”
“Switzerland exported virtually no gold at all to the US or UK in May. However, this comes as no surprise given that gold ETFs were not in demand and registered outflows.”