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China Gold Imports From Hong Kong Disappoint In January 2013

|Includes: SPDR Gold Trust ETF (GLD)

China gold imports plunged in January: 51 tonnes. This was not expected, considering the low gold price in January 2013 ($1660/ounce). The result was a 5% decline in the gold price in February ($1580/ounce).

Chart 1: China Gold Imports from Hong Kong

Net imports were 19.58 tonnes. That's 19.48/51.3 = 38%. That's a steep decline from the previous month, which was 74%.

I don't expect February to be much better as we have the Lunar New Year and a shorter month.

Disclosure: I am long AGQ.