China will dominate global gold pricing - ANZ

Australia and New Zealand Banking Group (Australian bank) in an analytical report said that the country is likely to "dominate" in determining the global price of gold, based on the fact that China's financial exchanges continue to grow and expand at a very fast pace.

“In addition to our role as the world's largest producer and consumer of physical gold, we believe that China will ultimately be able to significantly influence the pricing process. In addition, Asian financial centers are gradually opening up in the country. Therefore, there is no reason why Shanghai should not become the main center for gold trading, provided that appropriate institutional and legal reforms are carried out, ”said the Australian Bank.

In addition, according to the bank's analysts, by 2050 Asia will represent more than half of the global economy, and the growth of regional revenues will support the demand for gold. China and India are already the world's largest consumers of gold, but they have a long way to go to rise to gain global control of the gold market.

The bank believes that central banks are likely to continue to increase gold reserves in the long term. ANZ sees the gold price at $ 2,000 /oz by 2025. Gold is currently trading at $ 1147-1150 /ounce. "In the short term, the price may only slightly rise, but over the next few years, we believe that the cumulative effect of increased demand from investors and central banks will lead to an increase in the price of gold," the bank said in its report.