Gold demand from India and increasingly China is pushing up the price of the precious metal, the SA Gold Coin Exchange (SAGCE) said on Friday.
Alan Demby, SAGCE executive chairman, said India was the world's biggest gold importer and that the country's currency, the rupee, was set to appeciate in 2012.
“That points to additional buying of gold bullion,” he said.
Demby referred to a World Gold Council report, which highlighted growing demand for gold from China.
The report predicted that China would become the world's largest gold market this year.
China's demand last year was 769.8 tons, while India's was 933.4 tons.
Demby explained that this demand pointed to the likelihood of a bull run on gold.
“It is at a new high for the year and has broken a significant downtrend,” he said.
Gold has risen by 15 percent since a December 29 low.
“I suggest that the market's ability to remain above $1,750 has caught the attention of momentum-based traders.
