Professor of Economics Richard Grossman spoke to China Daily about gold price fluctuations in connection with the Chinese New Year and other annual celebrations. Many in the Chinese community purchase gold jewelry and other gifts to help celebrate the holiday.
“There does seem to be a seasonal element to consumer demand for gold in several countries. In China, demand increases in months leading up to the New Year. In India, it is said to increase during the holiday/wedding season, which runs from the end of September through January,” said Grossman.
But, he added, inflation, currency movements, and economic and political stability are “far more important factors” in gold price fluctuations than seasonal demands from China and India.