CONSUMERS in China, grappling with the slowest economic growth since the early 1990s, are shunning gold in a sign that prices are set to extend their decline from a six-year high.

The country’s imports of non-monetary gold slumped in October to the lowest in data compiled since January 2017, according to customs figures Tuesday.

China’s net gold imports via Hong Kong slipped for a second straight month in October, dropping to its lowest level since July, Hong Kong Census and Statistics Department data showed Tuesday.

Demand in the world’s top consumer is being hurt by concerns about growth and rising inflation, Capital Economics Ltd. said in a note.

“The gold price rally is now behind us,” analyst Kieran Clancy wrote. “Ongoing weakness in consumer demand will be one of the factors weighing on the price of gold over the coming year.”

China’s jewelry consumption is poised to fall 4 percent this year, while demand for gold as an investment will slump 20 percent, Metals Focus Ltd. has estimated. The country’s imports are likely to remain weak, Clancy wrote.

“Demand has been weak in China this year. Hence the low import numbers. Banks have also not been issuing quotas to import so supply going in has eased,” said Cameron Alexander, an analyst with Refinitiv-owned metals consultancy GFMS.

(SD-Agencies)