China’s post-pandemic economic recovery is expected to offer the Lunar New Year boost for gold bulls, with a likely rebound in domestic jewelry demand, Bloomberg reports, citing industry exports.
Key quotes
“Optimism about new year sales has improved considerably.”
“Confident sales “will be higher year on year, given the low base in 2020 due to the pandemic.”
“A stronger New Year period may also point to a more positive annual outlook. China’s demand may expand this year as policymakers have positioned domestic consumption as a priority. That likely bodes well for gold demand.”
Market reaction
Gold is making another attempt to regain the $1850 level, now trading at daily highs of $1846.77, up 0.58% on the day.
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