All signs point to a third straight year of gains for gold in Year of the Ox, analysts say
- Gold prices in Hong Kong rose 18 per cent in the Year of the Rat to HK$17,050 (US$2,200) per tael, taking gains for the past five years to 61 per cent
- Gold could rise by as much as 20 per cent to over HK$20,000 per tael, says Haywood Cheung, president of bullion exchange
Gold will continue to rise in the Year of the Ox albeit at a slower pace than the previous two years, aided by low-interest rates, inflationary concerns and the Covid-19 pandemic, according to analysts.
The price of bullion in Hong Kong rose 18 per cent in the Year of the Rat to close at HK$17,050 (US$2,200) per tael (37.8 gram) on Thursday, the last trading day before the Lunar New Year holiday.
He said that with the US likely to keep interest rates at near zero for some time and other central banks adopting monetary easing policies to boost the post-pandemic economic recovery, liquidity will inevitably find its way into gold, Cheung said.
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The Year of the Ox, which began on Friday, comes second in the 12 animals of the Chinese zodiac. The 12 animals – which follow in the order of rat, ox, tiger, rabbit, dragon, snake, horse, goat, monkey, rooster, dog and pig – represent a cycle of 12 years.