China’s gold demand in Q3 soars 24% to 88.1 tons
Gold demand in China, including the Mainland, Hong Kong and Taiwan, surged 24% to 88.1 tons in the third quarter, according to the World Gold Council.
Mainland’s gold demand jumped 25% to 78.9 tons from July to September this year. Meanwhile, gold jewelry demand increased by 24% to 74.8 tons, while investment gold demand was up 43% to 4.1 tons on the Chinese mainland.
The gold demand grows amid expectation of strong returns from the Mainland stock market, as the benchmark Shanghai Composite Index has more than doubled in the first 9 months.
The rising inflation, which was forecasted to hit 4.5% by the central bank, also led to higher expenditure on gold, because gold was taken as a traditional hedge against inflation. The consumer price index of China, a major indicator of inflation, gained 6.2% in September and soared 6.5% in October.
Despite the rising gold prices, Chinese investors’ appetite for gold bullions will remain strong in the fourth quarter, for the Chinese New Year is arou nd the corner. Gold demand in 2007 is expected to hit a record high in China, said the council.
Tags: gold