4 Aug 2015
Asian gold demand stays low, Koreans on a buying binge
FXStreet (Mumbai) - Asian gold demand hardly picked up in the last week, even though gold dropped to 5-1/2 year lows as buyers believe rate hike speculation in the US would lead to further losses in the metal.
A sustained weakness in Chinese equities is not helping gold either. There were signs of a pickup in Indian demand although premiums only rose to USD 1.50- USD 2 an ounce from 80 cents to USD 1 last week. In China, it is speculated that Gold is being sold at discounted prices to payoff stock losses.
South Koreans pile into Gold
South Koreans are on course to buy a record amount of gold in 2015. South Koreans are on the way to buy Won 1 trillion (USD 860 million) in bullion for the first time this year, based on first-half sales through Korea Gold Exchange 3M Co Ltd.
According to the World Gold Council, South Korea accounted for just 17 tonnes of gold demand in 2014, which is far lower than the 974 and 811 tonnes in China and India respectively.
A sustained weakness in Chinese equities is not helping gold either. There were signs of a pickup in Indian demand although premiums only rose to USD 1.50- USD 2 an ounce from 80 cents to USD 1 last week. In China, it is speculated that Gold is being sold at discounted prices to payoff stock losses.
South Koreans pile into Gold
South Koreans are on course to buy a record amount of gold in 2015. South Koreans are on the way to buy Won 1 trillion (USD 860 million) in bullion for the first time this year, based on first-half sales through Korea Gold Exchange 3M Co Ltd.
According to the World Gold Council, South Korea accounted for just 17 tonnes of gold demand in 2014, which is far lower than the 974 and 811 tonnes in China and India respectively.