Gold News

China and India stabilising Gold Prices

China and India are helping to keep Gold Prices stable as their economies grow and thereby limiting any serious "downside risk for investors in the precious metal.

That is according to Mineweb.com, which highlights a growing trend in the market that every time the value of gold falls, resistance comes in as investors appear to "buy on the dips".

The metals expert suggested that the Asian market, particularly China and India, is now the main driving force behind gold.

"It is notable that after the hiatus [last year], Indian gold imports are beginning to pick up again, and although well off the peaks of three years ago, they look to be staying well ahead of last year's extremely low monthly figures," it said.

The country was highlighted as the world's largest gold consumer, with jewelry in India acting as a "store of wealth" as well as an adornment because mark-ups are much smaller than in the Western jewelry market.

Dick Poon, manager of precious metals at Hong Kong-based firm Heraeus, highlighted the strong physical demand being seen for the commodity in Hong Kong, adding that those Investing in Gold remain happy to buy on dips at the moment.

""We're seeing strong demand on the physical side," he told Reuters.

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