Chinese Physical demand to drive gold price in 2014
Victoria Hewitt-Marsh, News Editor
5 Mar 2014, 11:24 a.m.
According to HSBC, consumer demand out of China and other emerging economies is likely to be the key driver behind bullion prices in 2014.
As institutional investors became bearish on the yellow metal, Chinese consumers have picked up the slack. In 2013 Chinese consumers took advantage of gold’s price decline to overtake India as the biggest consumer of gold. HSBC analyst James Steel confirmed that China is now consuming over 50% of global mine production and we are witnessing an historic migration of gold from the Western Banks to Eastern consumers.
Despite record consumer demand in China, HSBC believe gold will average $1,292 in 2104.