Gold prices have hit record highs this year, surpassing $2,400 per ounce, and China is at the forefront of this surge. Chinese demand for gold has been strong, driven by geopolitical tensions, lower US interest rates, and a need for safe investments. Last year, China surpassed India as the world’s largest buyer of gold, with a significant increase in jewelry, bars, and coin purchases. The People’s Bank of China has been consistently buying gold to diversify reserves and hedge against currency depreciation. Chinese consumers are still buying gold despite high prices, with even higher premiums being paid due to increased demand. Exchange-traded funds have also seen inflows of money in mainland China, showing continued interest in gold investments. The sustained demand from China is expected to support gold prices globally.
Vocabulary List:
- Forefront (noun): The leading or most important position or place.
- Surge (verb): A sudden and large increase in something.
- Geopolitical (adjective): Relating to politicsespecially international relationsas influenced by geographical factors.
- Reserves (noun): A supply of a commodity not needed for immediate use but available if required.
- Depreciation (noun): A reduction in the value of an asset over time.
- Inflows (noun): The movement of money or assets into a particular country or sector.
