China has topped India as the world’s top consumer of gold
Gold prices bounced back on Thursday. A relief rally finally materialized after the past four negative sessions. Investors remain tentative and worried about the euro zone developments.
Gold for June delivery rose over 2%, to $1,572.20 an ounce on the Comex division of the New York Mercantile Exchange.
Market players remain concerned. Many are focusing on Greece and upcoming elections that could decide whether it leaves the euro zone.
In addition, the dollar gained for 14 days in a row, stretching its longest winning streak in more than two decades. The greenback keeps pressure on gold and other commodities.
Gold bounced from Wednesday’s low, but it is hard to call a change of direction yet. The ongoing rally in the U.S. dollar index was a sign markets remain in risk-off mode. However, conditions are lining up for a rebound in risk assets in the near term.
The dollar index recently rose to 81.426, from 81.359 late North American trading Wednesday.
Most metals futures tracked gold higher, with July silver 2.77% up 68 cents.
Elsewhere, the World Gold Council reported China has topped India as the world’s top consumer of gold in the first quarter of the year. Indian demand for gold dropped 19% on year in the January-March period, while Chinese demand rose 7% in the same period. The two emerging markets accounted for 54% of global gold demand in the quarter, the WGC said.
