Proactive Investors (Australia)
Chinese consumers are one of the contributing factors behind the resurgence in the gold price as sales in China increased to 276 tonnes in the second quarter, 87 per cent higher compared to last year.
Interestingly, middle aged Chinese women are one of the major groups of buyers for gold products, snapping up gold when the price falls.
Jewellery demand in the second quarter was 153 tonnes, up 54 percent compared with the same quarter of last year, while bar and coin investment was 123 tons, up 157 percent over the second quarter of last year, the World Gold Council said in its report.
Some gold mines around the world have reduced production due to the recent price declines, and fewer supplies could lead to more price hikes.