China's high gold demand amid tensions and limited investment options drives gold prices to record highs.
China, as the world's largest gold producer and consumer, is driving gold prices to record highs above $2,400 an ounce due to its unrelenting demand amid geopolitical tensions, lower US interest rates, and limited investment options. As a result, Chinese gold jewelry demand rose by 10% in 2020, while bar and coin investments surged by 28%. The People's Bank of China has been on a 17-month gold-buying spree, diversifying its reserves away from the US dollar and hedging against currency depreciation, making the gold market's rally seemingly sustainable.
April 21, 2024
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