China gold sales may climb by 70% during Dragon year

After a weak sentiment due to India’s import duty hike, Gold markets looked to East again as the Chinese welcomed the Year of the Dragon which is expected to boost sales there.

The Chinese New Year is one of the largest celebrations and lots of gold is bought as presents during the time, analysts said.

Observers said value of gold sale in China during the New Year gold is likely to go up by 70 percent compared with prevous year’s 61 percent.

Along with India’s marriage and festival seasons, Chinese New Year remained the only occasion that is helping gold as all other gold boosting occassions often brought trouble for the world.

They said gold historically performs well in troubled times, because investors perceive it to be a safe haven.

They added that China is becoming increasingly important in the gold market due to the rising wealth among the emerging middle class.

The dragon nation consumed 23% of the world’s physical gold in the first three quarters of 2011, a 4% rise on the previous year.

They said a record Chinese import data in November helped place China on pace to compete with India as the top importer while India’s decision to raise gold import duty created confusion in the markets.

Chinese are waited for so long to the New Year while gold markets have been preparing for months for the New Year’s rush. – BullionStreet

Tags: China gold sales

Posted by admin on Jan 23 2012. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry