Caixin OnlineFinance & EconomicsTop Stories Finance Closer Look: How Chinese Consumers Helped Gold Prices to Slump
04.22.2014 19:56

Closer Look: How Chinese Consumers Helped Gold Prices to Slump

The supply of money in the country has slowed, meaning people's spending on the precious metal also ebbed
By staff reporter Zhang Huanyu

(Beijing) – China is becoming much more influential on the global gold market. Its consumers invested heavily in gold jewelry and bars last year to make the country the world's largest gold market.

In the past, investors would predict gold prices based on India's performance, and now they have to factor in China.

A recent slump in gold price was linked to behavior in China. The country greatly slowed the growth of its money supply, and that slowdown reduced investment in gold. This caused prices to slump, brining about a downturn, much like what happened to copper.

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