Trade Resources Economy There Is an Increasing Physical Demand of Gold From Asia

There Is an Increasing Physical Demand of Gold From Asia

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as U.S. equities weakened and the dollar fell. The most active gold contract for April delivery rose 6.9 U.S. dollars, or 0.56 percent, to settle at 1,241.50 dollars per ounce.

Physical demand for gold from India is strong ahead of the country's Diwali Festival and start of the wedding season. Meanwhile, gold trading volume in China rose to its highest level since May 2013.

Worries over slowing global economic growth also triggered safe- haven demand for gold.

Gold holdings of SPDR Gold Trust, the world's largest gold-back exchange traded fund, rose 1.5 tonnes last week, its first weekly inflow since early September.

For the month, gold futures fell 3.8 percent, the fourth straight monthly loss. For the fourth quarter, the precious metal lost 9 percent. According to market analysts, low inflation and expectation for the U.S. Federal Reserve to end its quantitative easing were two big factors driving down gold prices this year.

The fear of tapering and the spectacular performance of the equity market have worked against gold this year, analysts say. Investors lost faith in the metal as a store of value as equities rallied and an economic recovery prompted the U.S. Fed to pare its 85-billion-dollar monthly bond purchases.

Source: Made-in-China.com
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The Physical Demand of Gold From Asia Is Strong
Topics: Metallurgy