Jan Nieuwenhuijs, a gold market analyst, has assessed the state of the gold market, reporting that growing demand from both the private market and the People’s Bank of China (PBOC) has been instrumental in the rise of gold prices. Chinese private investors purchased 543 tonnes during Q1, while the PBOC acquired 189.
China Continues Propping Gold Prices up With Private and Central Bank Demand
The influence of China in the gold market has been instrumental in propping and supporting current price levels, according to Jan Nieuwenhuijs, a gold market analyst specializing in the Chinese gold market dynamics. Nieuwenhuijs determined that the demand from private investors and the People’s Bank of China (PBOC) have been responsible for gold touching all-time high (ATH) levels earlier this week.
Private demand from Chinese investors has increased enormously, with the sector importing 543 tonnes during Q1, registering a volume increase of 74% compared to Q4 2023. According to Nieuwenhuijs’ numbers, the PBOC also registered an increase in its total purchases during Q1, reaching 189 tonnes, 38% more than the previous quarter.
The analyst predicts the gold market will keep hot as the current demand levels for the precious metal will maintain or grow. For Nieuwenhuijs, the recent dump of $53 billion in US Treasuries and agency bonds combined for the same period examined means China is offloading dollars to acquire gold.
He stressed that this behavior will be further exacerbated as both Russia and the Western world start freezing and confiscating each other’s reserves on international soil, remarking the character of gold as a safe haven from fiat.
Also, the current slump in traditional investment options in China, like real estate and stocks, will likely increase the demand for gold as an alternative investment vehicle.
Nieuwenhuijs declared:
The Chinese public, which doesn’t have many investment options due to capital controls, will continue to invest in gold and support the price.
The analyst recently stated that we are in the starting stages of a multi-year gold bull market that might take gold prices to $8,000 per ounce during the next 10 years.