Demand for gold is likely to continue rising in China in the near future, according to a new report released by the World Gold Council.
Figures from the organisation revealed that demand from the private sector in the Asian nation is set to increase by at least 1,350 tonnes by 2017, a rise of 20 per cent on the current amount.
Albert Cheng from the World Gold Council explained China has a "cultural affinity" for the precious metal, which is one of the reasons why demand for gold is set to rise in the country.
He said: "When this is combined with an increasingly affluent population and a supportive government, there is significant room for the market to grow even further.
"Whilst China faces important challenges as it seeks to sustain economic growth and liberalise its financial system, growth in personal incomes and the public's pool of savings should support a medium term increase in the demand for gold, in both jewellery and investment."
Last year, Chinese customers bought 1,132 tonnes of gold, but this figure is expected to continue to rise in the coming months and years. With the price of gold taking a substantial hit last year and the precious metal's reputation as a safe haven suffering as a result, rising demand for gold in China is likely to be welcomed by investors.
Western markets have seen gold demand remain steady despite the global financial slowdown and the subsequent crash around the world, with the US continuing to sell a lot of gold jewellery, along with coins and gold bars.
Data from the World Gold Council stated that consumers purchased a record amount of gold in 2013, with China and India named as the top two markets on the planet for the precious metal.
Phillip Futures analyst Joyce Liu told Reuters recently that she expects the price of gold to remain "choppy" for the foreseeable future. The value of the metal hit a new two-week high on April 10th.
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