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Gold Price Surges Forward

By Joel ScanlonAug 5 2010

Gold prices shot up to higher than $ 1,200 per ounce on Wednesday. It was the first time this happened in nearly two weeks. The strong physical demand of gold lifted the price of the metal to a sixth day gain.

There was also supporting news that China is looking to expand its market for gold. China is the world's largest producer of gold and the second largest buyer of gold in the world behind India. In 2007 China (with 276 tonnes) overtook South Africa as the world's largest gold producer, the first time since 1905 that South Africa has not been the largest.

Chinese gold imports have been growing as the Central Bank began building up its gold reserves in recent years. The financial prosperity in China has also seen an increase in domestic gold investment. It is representative of a growing class of people in China who can now afford to buy gold.

A senior analyst with Montreal based Kitco Metals, Jon Nadler said that as China becomes more modernized more people will begin trading in financial instruments which will increase sales volumes for local gold traders. This is in addition to the gold being bought by the Central Bank in China. The combination will result in supporting higher gold prices.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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