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10 Feb 2014
Gold adds to gains on Chinese bullion demand
FXStreet (London) - Gold resumed its bullish momentum, adding to gains posted on Friday.
Increased Chinese consumer demand
Chinese bullion demand helped to support prices. According to data released by the Chinese Bullion Association, Chinese consumers bought 1,176.4 metric tons of gold in 2013, a 41 percent increase on 2012.
Over the same period, purchases of gold bars rose by 57 percent to 375.7 tons.
The increase in Chinese gold consumption comes against a backdrop of tightening economic conditions as Beijing seeks to rein in the centrally-planned economy. Chinese investors have increased their appetite for gold as a store of value in an uncertain economic climate, and it is estimated that they overtook India as the world’s largest consumer of gold in 2013.
The numbers released today helped to continue the two-week rally in gold prices – the longest since August last year.
US uncertainty supports prices
Gold prices climbed on Friday thanks to weaker-than-expected US jobs numbers fueling uncertainty over the US economic recovery. The US added just 113k new non-farm jobs last month, compared to consensus expectations of a robust 185k print.
Gold is currently trading at USD1,274/ounce, up 0.57 percent on the session and now up 5.6 percent so far this year.
Increased Chinese consumer demand
Chinese bullion demand helped to support prices. According to data released by the Chinese Bullion Association, Chinese consumers bought 1,176.4 metric tons of gold in 2013, a 41 percent increase on 2012.
Over the same period, purchases of gold bars rose by 57 percent to 375.7 tons.
The increase in Chinese gold consumption comes against a backdrop of tightening economic conditions as Beijing seeks to rein in the centrally-planned economy. Chinese investors have increased their appetite for gold as a store of value in an uncertain economic climate, and it is estimated that they overtook India as the world’s largest consumer of gold in 2013.
The numbers released today helped to continue the two-week rally in gold prices – the longest since August last year.
US uncertainty supports prices
Gold prices climbed on Friday thanks to weaker-than-expected US jobs numbers fueling uncertainty over the US economic recovery. The US added just 113k new non-farm jobs last month, compared to consensus expectations of a robust 185k print.
Gold is currently trading at USD1,274/ounce, up 0.57 percent on the session and now up 5.6 percent so far this year.