Physical markets ‘respond to low gold price’

<p>The low price of gold is encouraging physical buyers.</p>

Gold's value has been dropping in recent weeks, but this has encouraged physical markets to invest more heavily in the precious metal.

According to Joni Teves, precious metals analyst at UBS, these physical markets have responded to the fall in the value of the commodity, reports the Financial Times.

In a note to clients, the specialist said: "Our physical flows to Asia have been particularly elevated this week."

Hong Kong's banks, jewellers and its gold exchange have been struggling to meet demand for the precious metal in the last few weeks, even though the value of gold has been falling since the start of the year.

Haywood Cheung, president of the Hong Kong Gold & Silver Exchange Society, explained it is two decades since he can remember a rush to buy gold as strong as this.

Randgold's chief executive Mark Bristow recently told Reuters his company will use the falling value of gold as an opportunity to make an investment in mining projects.

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