Chinese gold imports from Hong Kong, widely viewed as a proxy for total imports, are surging thanks to a dip in prices, the Financial Times reports.

Hong Kong government figures show China imported a record 56.9 metric tons in September, a sixfold increase from the same month in 2010, the newspaper reports on its website.

Monthly gold imports for most of 2010 and this year have run at about 10 metric tons, but buying catapulted in July, August and September, the Financial Times reports.
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During that three-month period, China imported from Hong Kong about 140 metric tons, more than the roughly 120 metric tons for all of 2010.

(Associated Press photo)

Gold, which has been soaring on a weaker dollar in recent years, hit a record high of $1,920.30 a troy ounce in September but fell to $1,534 an ounce that same month, which brought in Chinese bottom fishers.

"In September we saw some bargain hunters come back into the market on the price dip," says Janet Kong, managing director of research at Chinese investment bank CICC, the FT reports.

Gold has traditionally served as a hedge to the dollar, rising when the dollar weakens and vice versa.

Jitters in other paper currency markets send gold rising as well, including the euro, which has taken a beating on fears that Greece may default.

Now the world is worried about Italy, a much larger economy, and default scares there will bring in goldbugs.

"Gold will continue to trend higher due to the eurozone situation," says
Hou Xinqiang, an analyst at Jinrui Futures, Reuters reports.