Your current location is:{Current column} >>Text
China is buying a lot of gold. UBS explains why By
{Current column}8578People have watched
IntroductionChina's appetite for gold remains robust, with UBS analysts analyzing the underlying sentiments ...
China's appetite for gold remains robust,Is it legal to sell forex EA with UBS analysts analyzing the underlying sentiments and trends driving the country's gold market dynamics. Despite some reservations, sentiment towards gold in China is predominantly bullish, reflecting a positive outlook tempered by cautiousness.
UBS's recent trip to China unveiled a prevailing optimism towards gold, albeit with concerns about the rapid ascent of gold prices and the breakdown of macro correlations. Market participants in China, much like their global counterparts, are curious about the origins of the recent surge in gold buying activity.
In the near term, there's a consensus among Chinese investors that any dips in gold prices should be viewed as buying opportunities. While expectations remain optimistic for gold prices in the medium to long term, many anticipate a period of consolidation in the near term. This pause could reinvigorate physical demand, which has recently taken a step back, and provide a chance for speculative interest to recalibrate.
Interestingly, UBS observed relatively restrained upside price expectations among Chinese market participants compared to those in other regions. This cautious approach is attributed partly to doubts about potential rate cuts by the Federal Reserve, given the resilience of US economic data.
Despite the cautious sentiment, China's Q1 gold imports remained robust, defying the 10% rally in gold prices denominated in Chinese Yuan. However, central bank purchases of gold saw a notable decline, with China's official gold purchases in Q1 falling significantly compared to the same period last year. This trend continued into April, indicating a potential easing in overall official sector gold purchases.
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!Tags:
Related articles
Oil falls as investors worry over recession fears By Reuters
{Current column}By Yuka Obayashi and Jeslyn LerhSINGAPORE (Reuters) -Oil prices retreated on Thursday after rising f ...
Read morePhilippine CPI hits near 4
{Current column}© Reuters. An aerial view shows the Ortigas business district in Pasig City, Philippines, June 10, 2 ...
Read moreCVS Health, Moderna, Services Activity: 3 Things to Watch By
{Current column}© Reuters. By Liz Moyer-- Stocks were weighed down by worries over China-U.S. relations on Tues ...
Read more
Popular Articles
- Under Lisbon's streets, ancient Roman galleries tell story of the past By Reuters
- Stocks climb on xx ahead of U.S. jobs data By Reuters
- PayPal shares jump on Elliot's $2 billion stake, annual profit guidance raise By Reuters
- U.S. and Japan pursue commercial diplomacy to counter China, envoy to Tokyo says By Reuters
- Currencies in limbo awaiting packed week of central banks By Reuters
- Japan's average minimum wage to rise at record pace this year By Reuters
Latest articles
-
Russia says two of its commanders killed as Kyiv wages Bakhmut offensive By Reuters
-
EU says Novavax COVID vaccine should carry heart side
-
AMD posts Q3 sales outlook below Wall St, data center growth remains strong By Reuters
-
U.S. to declare monkeypox public health emergency
-
How TikTok sensation Squishmallows found Warren Buffett By Reuters
-
Futures fall sharply as strong jobs data fuels rate