Chinese Gold Investment contributing to market
A leading gold analyst has suggested that an increase in Gold Investment activity in China has had a significant impact on the global market.
In an exclusive interview with The Gold Report, Victor Gonçalves, Equities and Economics Report writer, highlighted the importance of Chinese Gold investment in conjunction with the state of the global economy.
He said: "The price of gold has gone up because the fundamentals of the market are not good and anyone who understands the flight to safety would be Buying Gold.
"Additionally the Chinese buying of gold is also very important."
The significance of China has also been recognised by Dick Poon, a manager of precious metals at Heraeus in Hong Kong.
He notes that Gold Investment promises to remain strong in Asia for at least the first quarter of 2010 as a result of seasonal activities, according to Reuters.
He told the news agency: "I think physical buying can offset fund selling, with $1,074 offering a very strong support.
"Physical buying in Asia is strong, with seasonal demand before the Chinese Lunar New Year."
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