India overtook China last year and regained its traditional place as the world’s largest market for gold. Demand for jewelry gold in China fell by more than a third to 608 tonnes in the face of President Xi Jinping’s anti-corruption drive and ban on spending on luxury goods by senior officials. The market for physical gold bars fell even harder: by 51% over 2013 to 171 tonnes, a five-year low. Meanwhile in India demand for jewelry gold rose 14% to a record 690 tonnes. Analysts credit optimism inspired by the economic policies of new Prime Minister Narendra Modi with boosting spending on gold.
