Gold prices were seen falling on Thursday as investors raise concerns over the possible lower demand from China, the largest consumer of the metal.
Gold Futures for immediate delivery fell 0.18% lower to $1,303.50 an ounce at the time of writing, dropping from $1,309.09, the highest price since May 7. While silver edged 0.15% lower to $19.745 an ounce.
Holdings in the world’s largest gold-backed exchange traded fund, SPDR Gold Trust, lost over 4 tons to 787.95 tons on Thursday.
Prices for the yellow metal bounced back from its biggest drop in a year since 1981, climbing by 8.6% this year.
China Demand
A report from the National Bureau of statistics showed that gold and silver jewelry sales in China dropped by 30% to 20.8 billion in April from the year before.
The global investment and banking provider, Macquarie Group said the lower spending in China indicates the lower gold prices for now.
China overtook India as the world’s largest gold consumer last year, as consumption in China climbed by 32% to 1,065.8 metric tons last year, according to the World Gold Council.
China’s gold consumption is expected to rise to 1,350 tons by 2017, the World Gold Council said in April. China’s jewelry purchases of nearly 669 tons in 2013 accounted for 30% of the global total, the council confirmed.
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