What will ASIA use to replace devaluing currencies?
''Gold prices, which have taken a breather in the last two days, could get help in coming months from Chinese demand for bullion, says one analyst. Bank of America/Merrill Lynch expects China 'to provide continued support to gold prices going forward,' and maintained a medium-term gold price target of $1,500 an ounce for gold. China’s demand for gold has flourished thanks to a slew of regulatory changes, analyst Michael Widmer wrote in a recent report.
China liberalized jewelry market and also lifted restrictions on 'gold hoarding,' unleashing 'significant pent-up investment demand,' he added. China is now the biggest gold producer in the world as authorities have tackled supply issues and gold production has expanded fast. Government itself has also been a steady gold buyer, raising its gold holdings to 1,054 tons in recent years.''