China to control gold prices in 2010

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How will India’s reluctance to continue its gold buying spree affect the global bullion market? This is the question haunting many analysts across the globe as the world’s numero uno consumer of gold, India, posts a huge fall in gold imports in 2009.
But, the ray of hope for the bullion market is that China has fast emerged as the leader in gold buying. In fact, in 2009 China has pipped India to the post in gold purchases.
Chinese New Year gold rush has already begun, and robust demand looks likely to continue through 2010. So, in the coming years, analysts will be watching China, instead of India, to make their decisions on investments in gold.
China’s  gold purchases have grown 10% from 2008’s record in volume terms, rising 26% by value to equal $13.5 billion or more.
On recent trends, that would equate to more than 2% of China’s famously massive household savings (up from 1% ten years ago) and account for almost one ounce in every eight sold worldwide.

China to control gold prices in 2010