Gold prices buoyed by China, India demand

London

DEMAND in China and India is supporting gold but analysts believe that a marked shift in investor sentiment is needed to push prices to new heights.

According to the World Gold Council (WGC), which researches and lobbies for miners, China at 967 tonnes and India at 666 tonnes last year, accounted for 53 per cent of global consumer demand. Physical demand in Asia rises when the price falls. In recent months, consumers and hoarders in Asia have tended to buy when the price dipped to around US$1,200 an ounce.

In contrast, Western investor interest has been minimal because the fashion is currently equities, especially tech stocks. In the past few days, however, gold prices have jump…