Gold price continues to slide despite rising demand
Weakening US dollar expected to send price of precious metal higher in second half of year
The price of gold fell yesterday, the first trading day after the Lunar New Year holiday, continuing the losing streak that started at the beginning of this year.
Gold opened at HK$15,238 per tael, down 2.1 per cent from HK$15,560 on the previous trading day.
In London, spot gold traded at US$1,644.60 an ounce on Wednesday, down nearly 2 per cent this year.
Haywood Cheung Tak-hay, the president of the Chinese Gold & Silver Exchange Society, said he expected gold to trade in a narrow range between US$1,600 and US$1,700 an ounce in the first half.
But the weakening US dollar was likely to send the gold price to as high as US$1,900 an ounce in the second half, Cheung said.
"In light of the quantitative easing policies by governments across the globe, gold and other precious metals would become a more preferable asset class than currencies," he said.