China demand for Gold is increasing

China demand for Gold is increasing  

China the largest producer of Gold has outweighed India to be the top global consumer of Gold in 2013.  Also, according to the World Gold Council ( WGC) the consumer demand for Gold will increase  up to  20 % by 2017.

There are some factors which pushed the Gold to increase and the most important are the following:

 1/ China consumption of Gold rose to 1,066 tones in 2013, exceeding India demand; Chinese purchases of Gold increased including ( jewelry , gold bullion and coins)  for investment  as Chinese wealthy population are growing and the income net has  climbed.  The growing demand for the yellow metal   in China has pushed  the Gold prices to rise further.

 2/ The Gold is also related to the US Dollar, which is considered as the world's reserve currency, and as much as the US Dollar rises, the Gold prices edged down. While if the US Dollar is down, this will support the recovery  of the Gold.

 3/ In addition, the geopolitical tensions between Russia and Ukraine have increased the demand of the precious metals, especially the yellow metal as a safe haven asset.
 Also the rising demand of the Gold is related to additional factors such as the investors appetite for  stocks and other riskier assets, and if the Gold prices drop sharply turning away the investors from safe haven investment. 
In recent years, the yellow metal demand is increasing year over year in China, India and USA. But the Chinese market remains strong, which makes it an important factor that global investors have to focus on.

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