Market Watchers See China Buying More Gold

The release of Chinese gold reserves data last week revealed that the Asian nation has been the second-biggest buyer of gold in the last six years. According to Bloomberg, analysts and traders believe that the country’s buying is set to continue.
As quoted in the market news:

China bought 604 tons of gold since 2009, second only to Russia, according to data from the central bank and IMF. The total holdings make China the world’s fifth-biggest gold owner.
The annual gold purchases equal about 2 percent of global demand, and there’s “significant scope” for more Chinese additions, the London-based World Gold Council said Friday. The nation has been buying gold even as prices slumped from a record in 2011 to a five-year low

Joni Teves, an analyst at UBS Group AG (NYSE:UBS), told the news outlet:

China hasn’t been very open about its strategy, so what matters now is whether the market believes they intend to continue buying. They do appear to leave the door open to further purchases, which should limit the downside for gold.

Click here to read the full Bloomberg report.