The growth in Chinese gold mine output is expected to drop from 6% this year to about 1% in 2018, says the analytics firm Business Monitor International. It attributes the decrease to declining ore grades and waning profitability, which, reports Reuters, “will pave the way for rising imports to meet persistent strength in demand from Chinese consumers,” according to an analyst for the company.
And on Thursday, MarketWatch cited a note suggesting that “support for gold may come from seasonal demand out of India ahead of this month’s religious festivals, wrote strategists at Commerzbank in Frankfurt. September Indian trade data showed gold imports soared by 450% year-over-year to $3.75 billion, they said, which indicates Indian consumers haven’t been deterred from buying large quantities of gold by import restrictions. ‘If this should turn into a trend, it would doubtless lend support to the gold price,’ they said.”
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