As governments try to boost growth with a weaker currency, low inflation may eventually turn into higher inflation when monetary debasement continues. When a local currency devalues, gold prices in local currencies typically shoot up as local citizens scramble for an alternative currency to protect their wealth.
Gold and silver tumbled the most in six weeks as signs of faster U.S. economic growth fueled bets that the Federal Reserve will keep cutting stimulus. Palladium capped the longest decline in almost five months.
Chinese consumers, including those from the Mainland, are snapping up more golden horse accessories and gifts this year compared to last year's golden reptiles — snakes are viewed as both malevolent and divine by the Chinese.