According to the World Gold Council, gold demand in China, which overtook India as the largest user last year, will rise about 25 percent in the next four years as an increasing population gets wealthier.
A lot of attention has been focused on disappointing Chinese data, but British bank HSBC said that they don’t expect a weakening economy will have a drastic impact on the Asian gold market.
“Despite the slowing of growth in the Chinese economy, it is still growing nonetheless, which supports our view of expectations for growing bullion demand in that country on the back of rising income, particularly in the middle to upper middle class,” said commodity analysts at HSBC.
The Bank also noted that the bank’s chief China economist, Qu Hongbin, expects the government to deploy more monetary easing measures to support the country’s economy.
According to the World Gold Council, gold demand in China, which overtook India as the largest user last year, will rise about 25 percent in the next four years as an increasing population gets wealthier.
Consumer demand will expand to at least 1,350 metric tons by 2017. Growth may be limited this year after 2013’s price decline spurred consumers to do more buying last year, it said. China accounted for about 28 percent of global usage last year, the council estimated in February, said the London-based World Gold Council. |
