Gold Bullion Sees “Explosion” in China’s Demand, “Bargain Buying” in India

Summary:  In London trading this Tuesday morning, gold retreated to yesterday’s low of $1315. World stock markets and commodities slipped as well. Priced in Euros, gold bullion prices are currently around 975. According to Commerzbank in Germany, strong Asian demand could offer some support to prices despite ongoing outflows from gold ETFs. Explosion in Chinese demand is one reason, but also, it’s expected demand in India will pick up ahead of its busy jewelry buying season. New gold bullion import rules in India though have hampered demand over the summer months. One stipulation leading to much confusion is the mandate the 20% of gold be set aside for re-export. In the end, it’s expected that buyers in both China and India will buy gold in record numbers due to the relatively good bargains. Read more…