2015-04-30

Equity Rally Displacing Gold

Chinese speculators bypassed real estate for equity and now they're moving away from gold as well.
HK Trade Data Shows Chinese Gold Demand Falling As Investors Turn To Equities – Analysts
Looking forward, UBS said that physical gold demand will struggle in China as equity markets remain the investment of choice for investors.

“Hong Kong's Hang Seng Index has reached record highs and the Shanghai Composite Index is around the highest levels since 2007. Equities appear to be diverting investors' attention away from gold, and we think this has been augmented by the latter's lacklustre performance and the overall absence of a clear price trend in the past couple of years,” they said.

Analysts at HSBC also agreed that gold demand in China could struggle as investors buy more equities.

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