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Chinese Gold Demand Expected to Grow to Record

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Gold consumption in mainland China may match or exceed the record in 2013 after financial-market turmoil and the yuan’s devaluation boosted the metal’s appeal, according to the Chinese Gold & Silver Exchange Society, which also saw higher sales at jewelers in Hong Kong.

Buying in mainland China, which vies with India as the world’s largest consumer, picked up after the stock-market turmoil this year and August’s surprise devaluation, according to Haywood Cheung, chairman of the supervisory committee at the century-old bullion bourse. Demand in Hong Kong may expand 25 percent this half after a lackluster first six months, he said in an interview.

Gold prices are lower in 2015 following two years of losses on prospects for higher U.S. interest rates. The decline in 2013, when bullion sank 28 percent, spurred increased buying across Asia, and 2015 is shaping up well and may surpass that year’s total, according to Cheung. The yuan was devalued in the third quarter to bolster the nation’s competitiveness, and policy makers have also acted to stem a stock-market rout.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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