Gold investment rebounding in China

Buyers rush into a Beijing gold store, July 3, 2016. [Photo/VCG]

Chinese people are likely to be on gold investment fever again as international gold prices have rebounded. The country has consumed 318.28 tons of gold in the first quarter.

By the end of last week, international gold prices increased for its fifth consecutive week. According to the Economic Information Daily, international gold prices surged 25 percent in the first half of the year.

At the COMEX division of the New York Mercantile Exchange, the most active gold contract for August delivery added 1.39 percent, to settle at $1,339 per ounce.

Buyers inquire about gold prices at a gold store in Beijing, July 3, 2016. [Photo/VCG]

Because of the global economy is uncertainty, most forecasters see a continued robust trend in the gold price. Currently, UBS Wealth Management Research has raised its three-month price forecast for gold to $1,275-$1,425 per ounce and 12-month to $1,275. Morgan Stanley also has raised its gold price forecasts for 2016 and 2017 by 8 percent and 13 percent to $1,270 per ounce and $1,300 per ounce respectively.

So far, spot gold jumped 10.6 percent as of 14:10 pm (Beijing time) at $1,352 per ounce. The gold price in China is at 290.15 yuan per gram, increased 4.28 percent.

Buyers select gold jewels at a gold store in Beijing, July 3, 2016. [Photo/VCG]