UPDATE 1-China's net gold imports via Hong Kong in October down 43% y/y

(Adds background, context, and analyst comment) Nov 26 (Reuters) - China's net gold imports via Hong Kong in October fell 4.6% from September and were down 43% from the previous year, Hong Kong Census and Statistics Department data showed on Tuesday. China imported a net 15.414 metric tons in October, down from 16.151 tons in September, the data showed. Total gold imports via Hong Kong were up 70.5% from September at 28.277 metric tons. WHY IT'S IMPORTANT China is the world's leading consumer of gold, and its purchasing activities can significantly influence global gold prices. China’s central bank refrained from purchasing gold for its reserves for the sixth consecutive month in October, according to official data. KEY QUOTE "The low figure reflects sluggish domestic demand, reflecting fragile consumer confidence and an unwillingness to spend on adornment jewellery, although there would have been some interest in investment grade and for bar and coin," said StoneX analyst Rhona O'Connell. CONTEXT In the first three quarters of 2024, China's gold consumption dropped by 11% from the same period a year ago to 741.7 metric tons as high prices curtailed jewellery buying interest, the state-backed gold association said. Spot gold XAU= has risen 27% so far this year in a rally driven by interest rate cuts by the U.S. Federal Reserve and safe-haven demand due to geopolitical uncertainties. GOL/ The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing. (Reporting by Anushree Mukherjee in Bengaluru; editing by Jason Neely and Jan Harvey) (([email protected];))