Although Asian physical demand for gold has underpinned the market since the mid-April selloff, it could have less of an impact on the yellow metal’s price in the second half of the year.
Zhang Bingnan, secretary-general of the China Gold Association said in a media interview on Saturday that gold demand in China may slow in the second half of the year.
“The kind of frenzied buying in late April and early May won’t be repeated,” he said in the interview.
Some analysts are not surprised by this news as there are already signs that market has become saturated. Bill Baruch, market strategist at iiTrader, said gold’s struggle to hold gains above $1,400 an ounce is a sign that demand for physical gold is weakening.
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