China surpasses India as the largest global consumer of gold in the first quarter

Gold price technical analysis 30 - May, 2013

World Gold Council said in a report that China was able to bypass India to be the largest consumer of the precious metal during the first three months of the year, which contributed to the strengthening expectations that point towards the possibility of survival as the largest purchasing power to him during 2012.

The Indian demand for the precious metal has fallen by 19% on an annual basis during that period to 207.6 metric tons, while affected by the strikes, which affected a large segment of traders after the government announced the imposition of new taxes, in conjunction with the weakness of the rupee, which made the gold dollar-denominatedexpensive for local buyers.

This comes as witnessed Chinese demand for the precious metal rose by 7% during the first quarter to 255.2 metric tons, compared with 232.5 tonnes in the previous year, while formed when the two countries together (India and China) 54% of global demand during that period.

Has seen investment demand for gold in China rose by 13%, while increased by 7.9% for the jewelry to 156.6 tons, making it the largest market for jewelery for the third quarter in a row.

It is known that this change in style of living of the Chinese with a high income contributed to the increase in their attitude toward the precious metal, in parallel with the legislative amendments, and the current crisis faced by Europe that drive some to hedge its safe-haven