Net exports of gold by Switzerland reached a three-month high in April, with the country exporting 147.8 mt of the metal, figures released by the Swiss customs authorities showed Tuesday, although a surplus of metal remained.
The figures are up 25.4% from March 2016 and 2.5% from April 2015.
Net imports weighed in at 203.1 mt, leaving a surplus of 55.3 mt of gold in the country for April.
This is the lowest surplus so far this year, down from 109.3 mt in March.
The cumulative surplus for the year increased by 469.1 mt, based on the import and export figures.
Switzerland is a major global refining hub for gold.
A discount of 30 cents against the dollar price was heard from various sources this week, indicating that demand in the country remained weak.
The UK imported 78.8 mt of gold from Switzerland, up from 44 mt in March.
Exports to the UK accounted for 53% of total Swiss exports.
Commerzbank said in its research Tuesday that "the flow of gold from east to west is continuing."
These flows are into Exchange Traded Fund accounts vaulted in London.
Inflows into gold ETFs remained high, with 89 mt of inventory build since the beginning of the month.
Commerzbank described this as "the most pronounced monthly inflow since February."
When compared to traditional major gold importers -- China, India, the US, the United Arab Emirates, Hong Kong and Singapore -- the UK was the largest importer in March and April.
ASIAN DEMAND TEPID
Exports to China fell 52.5% on the month and 7.3% on the year, with 14 mt of the metal exported in April. This is a huge fall from December 2015 when the country imported 57 mt of gold from Switzerland.
When including Hong Kong, often cited as a proxy for mainland demand, exports to the Far East totalled 23.6 mt, the lowest since the beginning of 2015.
Physical gold demand continued to be relatively weak in China -- the world's number one physical gold consumer and producer -- largely due to suppressed jewelery demand.
India, the world's number two consumer, showed an uptick in exports from Switzerland, up 50% on the month but down 57.2% on the year.
This underscored just how weak gold demand has been during the start of the year, historically a time where gold buying is strong owing to wedding and festival seasons.
A 42-day strike by jewelers in March, in response to higher government excise duty on fabricated gold, crippled physical gold transactions in the country.
Most S&P/Platts sources are saying 2016 is the worst year in memory for Indian physical gold demand, with suggestions some international banks have stopped importing completely for the time being.
The Platts Gold Premium India 995 was assessed at minus $12/troy oz against the dollar spot price Tuesday, from minus $10/tr oz Monday.
Commerzbank said it viewed current demand weakness in Asia as temporary and expected it to pick up noticeably during the course of 2016.
