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The short answer is, yes. The Chinese Lunar New Year routinely has an effect on the price of gold.
But just as important is why, and what that means for people who are interested in trading the precious metal.
So how much of an effect is it? And can we expect the effect to keep happening?
China’s Gold Obsession
It’s not surprising that the most populous country in the world would be a large consumer of any given product.
But gold is a special case in China, even more than the second-largest importer of gold, India. There are traditional, historic and simple practical reasons for this.
Let’s get an idea of scale. China produces over a third of the world’s gold, but even so is still the largest importer.
This isn’t just the government and financial institutions building reserves, but Chinese citizens are the largest holders of gold on a per capita basis.
It’s More than a Tradition
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