China Painstakingly Seeks To Maintain Value And Buy Gold Investment.

Gold demand fell 2% last year, but it will pick up in 2016, because the timing of US interest rate rises is later than expected. At the same time, economic growth worries and RMB weakness are spurring China's buying and selling.

According to Reuters website January 26th, GFMS forecasts that gold prices will rise to above $1200 an ounce in 2016, and the average annual price will be $1164 an ounce, while the current price is close to $1100.

GFMS also said that gold demand is expected to grow by 5% this year.

GFMS said that those worried about the devaluation of the renminbi have reduced their wealth in China.

It may buy gold to preserve its value.

"

Growth slows down, coupled with a weak outlook for the renminbi, which should benefit the gold in the medium term. If there is a clear signal of price pickup or at least stabilized, we should see investors returning to the gold market, "GFMS said.

"In addition, the market has clearly reflected the four interest rate increase in the United States this year.

However, given the sluggish economic recovery and the easing of monetary policy stance outside the US, we may only see two small rises in the US interest rate.

This should further strengthen market confidence. "

The US Federal Reserve (FED/) is expected to raise interest rates.

One of the reasons for the fall of 10% in 2015.

The quarterly figures suggest that demand for gold rose at the end of last year, the report said.

Demand in China increased by nearly 1/4 in the fourth quarter of 2015, the highest since 2013, because investors were worried about the slowdown in the country's economy and gold prices fell.

The decline in prices and holiday buying also increased the consumption of jewellery in India to the highest level in the third quarter of 2008, up 14% to 204 tons.

Fundamentals have also been reflected in the decline in gold prices.

In the latest edition of 2015 gold survey report, GFMS said jewelry manufacturers' demand fell by 3% compared with the same period last year, while retail investment and industrial demand decreased by 2% and 4% respectively.

In addition, the output of mine and recovery gold increased slightly, but the supply of gold from hedge activities decreased.

However, the report also said that there are reasons for the good market outlook.

The supply of gold mines will continue to decrease after the biggest decline in the last quarter since 2008, and the fall in prices is expected to stimulate retail demand, and central bank procurement will still bring support.