Assessing the current state of the gold market, gold market analyst Jan Nieuwenhuis said that rising demand from both the private market and the People's Bank of China (People's Bank of China) played a major role in the rise in gold prices. Ta. Chinese private investors bought 543 tons in the first quarter, and the People's Bank of China bought 189 tons.
China continues to support gold prices with private and central bank demand
According to gold market analyst Jan Nieuwenhuis, who specializes in China's gold market trends, China's influence on the gold market has been effective in supporting current price levels. Nieuwenhuis cited demand from retail investors and the People's Bank of China as the reason why gold hit an all-time high (ATH) earlier this week.
Private demand from Chinese investors increased significantly, with the sector importing 543 tonnes in the first quarter, an increase of 74% compared to the fourth quarter of 2023. According to Nieuwenhuis, the People's Bank of China also totaled 189 tons of purchases in the first quarter, an increase of 38% from the previous quarter.
Analysts expect the gold market to remain hot as current levels of demand for the precious metal continue or increase. The recent sale of $53 billion in U.S. and government agency bonds during the period under review means China is dumping the dollar to get its hands on gold, Nieuwenhuis said. That's what it means.
He stressed that this action will only get worse as Russia and the West begin to freeze and confiscate each other's foreign exchange reserves internationally, pointing to the nature of gold as a safe haven from fiat currencies..
Chinese citizens, who have fewer investment options due to capital controls, will likely continue to invest in gold, supporting the price.
One analyst recently said we are in the early stages of a multi-year gold bull market, which could see gold prices rise to $8,000 an ounce over the next decade.