What does China’s economic revival mean for gold?
“Gold demand in China, in particular, investment demand, has benefited from rising concerns for the economy as well as the lowered opportunity cost amid the COVID-19 outbreak and the central bank’s response to it. But with signs of a potential economic recovery emerging, can we expect gold’s attractiveness as a safe haven in China to fade? We believe that the answer is ‘No’.”
USAGOLD note: Seems like there are a number of demand sources merging at this juncture and it will be interesting to see how it affects availability, premiums and prices as move through the second half of the year – Asian demand (including China), global investment demand for bars and coins, ETF bullion demand, central bank demand, just to name a few.