Despite gold prices nearing the historic highs set in May, demand for gold in Asia continues to surge. Industry officials note that buyers are flocking to purchase gold to hedge against geopolitical and economic uncertainties.
Spot gold is trading just above $2,300 per ounce, up about 12% this year, and only about 6% away from last month's all-time high.
Analysts believe that declining confidence in other investment options such as real estate and stocks is also contributing to the increased demand for gold.
London Bullion Market Association CEO Ruth Crowell told Reuters, "When the macroeconomic environment normalizes and real estate and stocks become more attractive, price sensitivity will return."
Bruce Ikesui, chief director of the Japan Bullion Market Association, stated that even with gold prices at record highs, bullish investors in Japan still outnumber the bearish ones.
Experts say that Chinese investors are also seeking value in gold amid currency depreciation, prolonged real estate stagnation, and trade tensions. In the first quarter of this year, China's gold coin and bullion purchases surged by 27%.
Albert Cheng, CEO of the Singapore Bullion Market Association, told Reuters on the sidelines of the Asia-Pacific Precious Metals Conference, "Market trends indicate that if consumers want to buy gold, they will do so, regardless of the price."
In other parts of Asia, retail investors are also pouring funds into this safe-haven asset, with gold becoming increasingly popular among younger buyers.
