Thursday, September 24th 11:34 AM IST

India, China Gold demand may drive Gold Prices in coming months

# Gold News  

German Bank, Commerzbank looks for Chinese and Indian demand to support gold in the coming months. Indian gold demand traditionally peaks in the fourth quarter since the festival season begins at the end of September and the wedding season starts in November. Increased gold demand in India and China should lend support to the gold price.

NEW YORK (Bullion Street): German Bank, Commerzbank looks for Chinese and Indian demand to support gold in the coming months.

The German bank cites Swiss customs data showing that Switzerland exported 173.9 tons of gold in August, 8% more than in the previous month, with nearly 70% of this shipped to Asia.

“Whereas exports to India remained constant month-on-month, 50% more gold was exported to China,” said analysts at Commerzbank.

Exports to Hong Kong were actually more than twice as high as in July, which suggests that China also imported more gold from Hong Kong last month. Corresponding figures will be published by the Census and Statistics Department of the Hong Kong government in the next few days, Commerzbank added.

“India is also likely to import more gold again in the coming months given that the All India Gems & Jewelry Trade Federation predicts that gold demand there will pick up noticeably in the fourth quarter,” said Commerzbank.

“Because of the low prices, gold demand could apparently grow by as much as 15% year-on-year to around 250 tons, which would constitute the highest fourth-quarter figure since 2012,” analysts added.

“Indian gold demand traditionally peaks in the fourth quarter since the festival season begins at the end of September and the wedding season starts in November. Increased gold demand in India and China should lend support to the gold price,” Commerzbank concluded.

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