Gold's Physical Demand See Revival As Gold Prices Tumble

SEATTLE (Scrap Monster): According to market analysts and industry participants, purchasers who were anticipating a reversal from the precious metal's robust gain this year have been drawn in by the steep decline in gold prices from the peak highs.

The yellow metal's physical demand has significantly increased in important markets like China and India.

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By the way, spot gold prices have dropped by almost 4% from the record highs set at the end of October this year.

The actual demand for gold has increased since October, particularly following the steep decline in prices in November, which suggests a substantial shift in market sentiment, according to Robin Kolvenbach, co-CEO of the Swiss refinery Argor-Heraeus. Private investors have been becoming more interested in minted products. Additionally, he said, the refinery has seen a rise in production requests from institutional investors for physical gold.

The analysts noted that if prices stay around $2,600 per ounce, the recent increase in demand for gold in China and India is probably going to continue in December. When gold prices fluctuate, buyers are likely to become confused and be forced to wait for a clear trend to emerge before making any new purchases.