China overtakes India as biggest gold investment market

China surpassed India to become the largest market for gold bars and coins in the first quarter of this year, as rising inflation sparked an increase in bullion investment, the Financial Times reported. According to data released by the World Gold Council on Thursday, Chinese investors purchased around 103 metric tons of gold between January and March in the form of coins, bars and medallions – up 55% from the previous quarter and more than double the level of a year earlier. Rising gold consumption is largely due to deregulation of China’s gold market, which has led to an increase in the number of banks importing gold and the number of shops that sell the commodity. Chinese and Indian demand has supported prices, even as Western investors have been reducing exposure to gold on expectations that improving economic conditions and interest rates’ upward trend would mark an end to the global rally.