Demand for gold in Asia is experiencing a notable surge, with investors turning to the precious metal as a safeguard against ongoing geopolitical and economic instability. This trend persists despite elevated gold prices.
In Japan, investor sentiment towards gold remains overwhelmingly positive. Chinese investors, confronted with currency devaluation, a downturn in the real estate market, and escalating trade tensions, have markedly increased their gold purchases. Data indicates a 27% rise in Chinese gold acquisitions during the first quarter of the year.
Similarly, retail investors in Thailand and Vietnam continue to buy gold in substantial quantities. However, the situation differs in India and Australia, where demand is highly sensitive to price fluctuations. In India, gold prices are trading at a discount, reflecting a cautious market. Meanwhile, the Perth Mint in Australia reported a significant decline in gold sales in May.
Albert Cheng, CEO of the Singapore Bullion Market Association, emphasized the persistent demand for gold regardless of its price. He stated to Reuters, “The trend in the market has been that if the consumer wants to buy gold, they will. The price doesn’t matter.”
This increasing inclination towards gold highlights its enduring role as a safe haven asset in times of economic and geopolitical uncertainty across the Asian continent.
Dailygoldprice provides you with live gold prices so that you can always understand the changes in the price of gold and better invest in gold.