Chinese gold imports through traditional conduit Hong Kong are lower this year, but then the country may well be getting metal elsewhere, Commerzbank says. Analysts cite data released at the start of the week by the Census and Statistics Department of the Hong Kong government showing that China imported only 29.6 tonnes of gold, on a net basis, from Hong Kong in October. “Though this was nearly three times as much as in September, it was 36% less than last October,” Commerzbank says. The 439 tonnes of Chinese gold imports in the first 10 months of the year were 22% lower year-on-year. “That said, there is much to suggest that the trade routes have changed – i.e. China is increasingly importing gold from other countries, such as Switzerland. China imported 400 tonnes of gold directly from Switzerland between January and October – 60% up on last year. Thus the Hong Kong data paint a distorted and overly negative picture of Chinese gold demand, in our opinion.”

By Allen Sykora of Kitco News; asykora@kitco.com

FXTM: 'Is This The End Of The Road For Bitcoin?'

With Bitcoin continuing to sink, Lukman Otunuga, research analyst at FXTM, asks the question: “Is this the end of the road for Bitcoin?” The cryptocurrency was making headlines for sharp gains a year ago. “Fast forward 12 months, the cryptocurrency is gasping for air with prices sinking deeper and deeper into the abyss.” The analysts says a combination of factors have hurt the cryptocurrency, ranging from regulatory scrutiny, infighting within the crypto community and a noticeable drop in investor appetite. “With Bitcoin finding comfort below the $4,000 level and showing little sign of recovery, the next key level of interest may be found at $3,000,” Otunuga adds. Meanwhile, Hussein Sayed, chief market strategist at FXTM, says “traders are no longer worried about price movements as much as the fate of these currencies. A fall from almost $20,000 to below $4,000 in Bitcoin’s price is a complete crash.” The market also underwent a sharp correction before when prices dropped from $1,150 in December 2013 to below $300 more than a year later. “However, the difference between then and now is the market cap,” Sayed continues. “Back then investors and speculators may have lost $9 billion. However, this year’s move has wiped out more than $250 billion from its peak.”

By Allen Sykora of Kitco News; asykora@kitco.com

BBH: New Fed Governors All ‘Orthodox Centrists'

New Federal Reserve governors have tended to be “orthodox centrists,” points out Brown Brothers Harriman. The newest Fed governor is Michelle Bowman. “Five of the seven members of the board of governors are now in place, with two more governors (Marvin Goodfriend and Nellie Liang) still awaiting confirmation,” BBH says. “Despite [U.S. President Donald] Trump's complaints about Fed policy, all of his choices have been orthodox centrists.” Bowman will be able to vote at the Dec. 19 policy meeting, where a 25-basis-point hike is still widely expected.