Chinese Gold Demand on Track for 17-percent Fall in Q1 2014

Bloomberg reported on Monday that the China Gold Association sees Chinese gold demand falling 17 percent in the first quarter of 2013 from the year-ago period.

As quoted in the market news:

Demand may drop to 250 metric tons from 300 tons, Zhang Yongtao, vice chairman of the Beijing-based group, said in an interview March 7 in New York. Usage surged 41 percent to 1,176.4 tons in 2013 from the year before, the group said last month.

Buyers who snapped up bullion in 2013, during the biggest price slump in more than three decades, may be deterred by this year’s rebound in prices, which are off to the best start since 2008. Gold has risen 11 percent since December as faltering global growth and tension in Ukraine boosted the metal’s appeal as a haven. The drop in sales may be brief as prices stabilize and buyers return for holiday purchases, Zhang said.

Click here to read the full Bloomberg report.