Cheaper gold attracts some buyers, outlook bearish
黄金价格下跌猛烈 市民狂抢

Gold price dip in the global market has spread to China. Even bargain hunters can only stop the price from easing further, the outlook for gold prices is bearish.

This year’s first drop of gold prices in Beijing. Major gold stores in the capital city of China have put on cheaper price tags of the precious metal. That’s drawing customers back in.

"The prices look better compared with the same period of last year. And we are seeing more pieces and heavier pieces being sold," said Wang Jun, manager of Caibai Gold Store.

Chinese bullion buyers are famous for being price sensitive. The country overtook India for the first time as top global consumers of the metal in 2013.

Analysts say Chinese demand for gold increased sharply towards the end of March because of the weak yuan. Other investors are still in a wait and see mood, as they bet on the long-term performance of gold prices, not short-term speculation.

But gold may fail them according to market forecasts. Banks in China are importing less gold as they see easing demand after the holiday season. Foreign investors are abandoning gold in favour of better-performing equities.

A slide in China’s import volumes could further dampen the global prices from recovery, a metal that has already become 3 percent cheaper in March.