Gold Futures, dollar and China demand
Gold future rose by 0.5 percent or $6.10 by the end of trading in New York to finish the session at $1,111.50 an ounce for June delivery.
Along with the weakness of the U.S. dollar, Chinese demand for gold is expected to increase by double over the next decade also helped push the price of gold futures up. Chinese gold demand news was from a report from The World Gold Council, which based their demand assertions on an increased interest in jewelry and of course investment demand for gold.
In 2009 gold demand in China grew to 424 metric tons, with their domestic gold production providing only 314 metric tons of that. With demand growing as it is, they'll continually have to go outside their country for supply, and that should help push gold prices up, even with the usual safe haven and inflation factors not being considered.
Just these factors in China alone provide a solid support for gold prices, and that doesn't include growing interest from institutional investors and those wanting to protect the value of their assets.
Gold futures and China
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