Platts reported that China’s plans to shut down small gold smelters will have a positive long-term impact on gold prices.

As quoted in the market news:

MITT said at a national gold industry meeting on Tuesday that it planned to shut down gold producers with ore processing capacities of less than 50 mt/day. The detailed timetable for implementing this was not revealed.

A Galaxy Futures analyst said:

We see little impact from this move in the near term, but in the long run, it will favor a rise in the gold price.

Click here to read the full Platts report.