Chinese net gold imports from key conduit Hong Kong fell to 67.04 tons in April, down from 85.13 tons in March, and the lowest level since February 2013. A gold trader in Shanghai notes Chinese banks are flush with the metal, having imported a record 1.16K tons in 2013.
As China slows though, Morgan Stanley says policy changes in India could be supportive for gold, pointing to an easing of import rules by the country's central bank. The support is likely to be modest, says Morgan, as much of the
"lost" demand from tighter rules was being met by unofficial imports. "The effective rise in gold imports will be much lower on a net basis."
Gold is off 1% in morning action to about its lowest level since early February at $1,278 per ounce. GLD -1.3%