Demand for gold in China has surged as investors turn to the precious metal amid rising concerns surrounding inflation in the country.
Gold's bull market stumbled in January, with the price sliding more than seven per cent from its all-time high, something that buyers are taking full advantage of, Reuters has reported.
Speaking to the news provider, an Industrial and Commercial Bank of China (ICBC) executive explained that demand in the country for physical gold and gold-related investments is growing at an explosive pace.
We are seeing explosive demand for gold. As Chinese get wealthy, they look to diversify their investments and gold stands out as a good hedge against inflation, Zhou Ming, deputy head of the ICBC's precious metals department, said.
It follows the decision of the Chinese government to introduce a number of measures to battle rising inflation, but unlike the property market, investment in the gold sector is something the government is encouraging, Mr Ming added.