Analysts from the China Mineral Company reported today that Bank of America (BoA) has released a statement on the future of gold demand. BoA analysts predict that China will be a primary driver of gold demand in coming years. Their report cites the opening of the Chinese jewelry market as an encouragement to invest in the precious metal.
“Along with the liberalization of the jewelry market, the (Chinese) government also focused on opening up the investment sector, allowing investment in gold,” reports Tad Brooks of the China Mineral Company, citing the BoA report. “China’s gold jewelry demand and retail investment will stay healthy in the coming years, which should provide continued support to the global gold market.”
The report comes amid three-week lows in gold moving averages. The timing seems to indicate that BoA continues to see the role of gold as a safety investment protecting against inflation.
