End of bull market in Chinese equities would help gold

The lure of a soaring stock market has surely dampened Chinese investors’ demand for gold. Correspondingly, even though we are not predicting an imminent crash, the precious metal should benefit when enthusiasm for Chinese equities does eventually cool. Admittedly, developments in the advanced economies, and especially in the US, have recently had a bigger influence on the global price of gold. However, we also continue to expect a boost from an escalation of the crisis in Greece.