Published: 2021.10.29. Why is the price of gold in Asia formed differently?

Why is the price of gold in Asia formed differently? - Preview

The peculiarity of both countries is as follows: once gold enters the country, it cannot be re-exported - but there are exceptions.
It may seem insane that the two main consumer countries in the gold market are banning the export of gold bullion. In recent years, at various times, they have imposed restrictions on the inflow of new gold and, thus, act as dead ends for the precious metal. The implications for the two large Asian countries are that they do not directly contribute to the international price of gold, but their domestic prices reflect the strength of domestic demand. Prices in these countries rise above or fall below the world price when the national supply lags behind or exceeds the demand for gold.