After the decline in bullion prices, Chinese consumers are picking up gold again, lifting the precious metals market and related exchange traded funds.
COMEX gold futures were hovering around $1,212.1 per ounce Tuesday.
China Gold Association president Song Xin estimates that Chinese gold demand over the first quarter rose 1.1% year-over-year as the relatively low bullion prices attracted retail interest, notably in gold jewelry, reports Chuin-Wei Yap for the Wall Street Journal.
The market could be turning around after a decline in gold prices over the past year in response to a plunge in Chinese demand in 2014, a record surge in gold consumption in the previous year and the strengthening U.S. dollar.
Song also believes that China will maintain a steadily rising demand growth for the rest of the year after a 25% drop off in demand over 2014.
The China Gold Association believes the relatively lower price in gold is supporting jewelry demand in Asia. For instance, Chinese jewelry demand could rise 8% this year, Song added.