China's Q1 gold consumption climbs nearly 6% on safe-haven demand
Bullion consumption in the world's largest consumer totalled 308.905 metric tons in the first three months of the year.
Bullion consumption in the world's largest consumer totalled 308.905 metric tons in the first three months of the year.
Gold has surged to record highs above $2,400 an ounce in 2024, with China at the forefront of the remarkable ascent. Geopolitical tensions and lower US interest rates have bolstered gold's appeal as an investment. Chinese demand, spanning retail shoppers to the central bank, continues to drive the rally.
Metals with firm fundamentals and good liquidity have become more appealing to global financial investors amid receding U.S. interest rate cut bets, the conflict in the Middle East, and the war in Ukraine.
Gold price surge in India has affected diamond jewellery demand in India. Jewellers have switched to 14-carat gold in a bid to cut selling prices and thus not lose out on revenues. The industry has seen a rise in 14-carat options due to gold price increase.
Rising prices of precious metals come ahead of Gudi Padwa and Ugadi, the auspicious day on the Hindu calendar marking the beginning of New Year in certain parts of the country. The price surge has dampened mood among potential customers who prefer to buy gold to celebrate this auspicious day, which will fall on April 9 this year.
The dollar was down 0.1% against its rivals, making gold more appealing for other currency holders.
Gold and silver prices rallied on Thursday after the US Federal Reserve maintained that it would cut interest rates three times in 2024. The weakening of the dollar and prospects of increased liquidity coupled with lower interest rates sparked the rally, said experts.
Rising gold rates don't deter buyers. Recent surge to Rs 67,000/10 gm led to demand drop. Zaveri Bazar sales halved, Dadar hub sees slowdown. Colin Shah predicts Rs 70,000 breach due to global factors.
Spot gold edged 0.1% up to $2,158.26 per ounce, as of 0151 GMT. U.S. gold futures fell 0.1% to $2,163.50.
Gold reached an all-time high of $2,185.19 after a report showed a rise in the U.S. unemployment rate and a moderation in wage gains despite job growth acceleration in February.
Gold prices inched higher on Monday, lifted by a softer dollar, as the bullion partially recovered from a slump last week on hot U.S. inflation data that cooled prospects of early rate cuts by the Federal Reserve.