Gold climbed $24.50 or 1.75% yesterday to $1,425.40/oz and silver finished +0.82%.
Asia is seeing a new gold rush.
Demand for gold bars, coins and jewellery has soared as bargain hunters try to capitalize on the dip in prices.
In Hong Kong and Beijing customers lined up outside banks and jewellery shops to make purchases and in some instances there was not enough physical metal to meet the demand.
The Shanghai Gold Exchange’s cash contract hit a new record high yesterday (43 metric tonnes, up from 30.4 on April 19th) while gold coin sales at the U.S. Mint have nearly tripled in April against last month’s figures.
Joni Teves of UBS research said, “Physical markets have responded to the much cheaper gold price levels,” and “our physical flows to Asia have been particularly elevated this week.”
Asian investors demand for the physical yellow metal has supported the gold price, rallying it up 8.1% from last week’s low.