Gold rises to record on strong demand in China
The robust demand of gold in China, United Arab Emirates (UAE) and India, has been pushing up the gold price, traders said on Monday.
The yellow metal hit record highs of Rs 22,195 per tola, equivalent to Rs 18,960 per ten grams in bullion market, while it reached US$949.10 per ounce in the international market.
“Main reason behind the price rise is the fresh trend of demand increase due to high consumption in China, following surge in its gold jewelry export, Coordinator on Gem and Jewelry Strategy Working Group, Shafi Chowksi said.
Gold sales in the Greater China area, including Hong Kong, Macau and Taiwan totaled 363.3 tons last year, up 23% from a year earlier, among which, 326.1 tons were sold in the mainland, up 26% year-on-year, sources said.
Fears of inflation as well as output drop in South Africa are also said to be contributing factors to the price hike.
Tags: gold, inflation