Gold Rush Continues in China and India

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Gold Physical demand increased 8% in prices from a two-year low on April 16. In April, according to refiner MMTC-PAMP India Pvt. Ltd., Indian’s imports touched more than 100 tons, currently valued at $4.7 billion, and shipments possibly will top that again this month. The London-based World Gold Council estimates last year the country’s gold imports were 860 tons. The China Gold Association stated on May 7, the consumption of gold in China increased by 26% in the first quarter from a year earlier.

Since the end of 2008, gold rushed 62% as the Fed was joined by central banks in Europe and Japan in printing incomparable amounts of money, nearly doubling sovereign obligation to more than $23 trillion, a Bank of America index shows. Twelve specialists measured by Bloomberg expect prices to surge this week, with ten bearish and five neutral.

Chinese economic data came out at overnight news, and it was generally nothing to write home about. According to SocGen, the Chinese Industrial production increased by 9.3% in April, just missing estimates of 9.4%, Fixed Asset Investment development slowed to 20.1% from 20.7% in the previous month, trade sales development raised by 12.8%, exact in line with expectations.