All the commodity prices, including crude oil / aluminum / copper / coal etc., crashed in the last six months across the globe. But Gold prices were remaining firm, and in fact in the last two months they have moved further due to a single customer.
China has been buying Gold in tons every months, ever since 2008 beginning, to shore up its gold reserves. It has also been parking part of its monthly trade surplus into the most dependable global currency I.e, Gold, which can help it at a future date, in case of any global catastrophe.
With China only now announcing that it has been amassing Gold from the open market for over a year, speculators are now expected to push up global gold prices in the coming months to multi year highs, with ease.
And who will be upset with the increasing gold prices ? Will it be the US or Europe or Japanese citizens ?
It is none of these people. Only the Indian public will be upset with the increase in gold prices, because they are the largest gold customers for the last several years, because traditionally Indians love creating and wearing great gold ornaments around their neck / hands / wrists / ears / nose / hip etc.,