Hong Kongs gold market debut in the Year of the Rooster!
The Year of the Rooster always comes with wishes for good fortune and prosperity. But, this time it comes with real prosperity thanks to gold.
Why do people in Asia buy so much gold? What could be the role of Hong Kong?
Hong Kong at the forefront
Recent data show that Hong Kong could become once again the world's main gold trading center in 2017. Haywood Cheung, president of the Chinese Gold and Silver Exchange Society, pointed out several factors that could result in Hong Kong taking the lead:
“The US and global stock markets have fallen after the new US president’s policies. There are many political uncertainties ahead of the Year of Rooster as there will be many presidential elections in Europe in the following months.”
Why do people in Asia buy so much gold?
The political and economic changes in the rest of the world influence Asia as well. There is a general need to protect the capital in the face of so many market concerns. That is why, as in many other countries, investors in Hong Kong have flocked to gold.
Mr. Cheung declared that: “When stock markets are full of uncertainties, investors choose to invest in gold.”
From the Year of the Monkey to the Year of the Rooster
Because of Brexit, gold prices rose by 8% in the Year of Monkey. In the Year of the Rooster, it is likely to continue the same trend.
According to the members of the Chinese Gold and Silver Exchange Society, gold trading is increasing substantially this year. One of the main reasons is that gold traders from Switzerland, Australia, and South Africa are moving to Hong Kong.
Gold price forecast in Asia
Mr. Cheung has also made some forecasts for gold prices. In the first half of 2017, he expects gold to be priced at $1,450 per ounce. In the second half, he foresees a rise to $1,600 per ounce.
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