Gold demand in China is set to rise 20 per cent in 2011
Gold futures were up $58.20, or 3.87%, at $1,563.00 an ounce by the close while silver climbed over 2% as weakness in the U.S. dollar and concerns about inflation helped lure investors to precious metals.

Albanian_Minerals President Sahit_Muja said that "Chinese consumption of gold may climb to 20 per cent in 2011".
China, the world’s second-biggest economy boosted gold consumption to 580 metric tons in 2010 from 200 tons in 2000.

The demand and price of gold both rose whenever there was a risk of currency devaluation.
Banks and investors worldwide view gold as a safe heaven that will keep their assets safe.

Higher rates of inflation in China, India and Europe Union lead to rise of gold prices.

Huge profits in China's banks will give a boost to gold prices.
China’s largest state-owned banks continued to earn strong profits in the first quarter Industrial and Commercial Bank of China , the world’s biggest bank by market value, reported a first quarter net profit of Rmb 53.8bn up 29 per cent from the same period on 2010.

International Bank of China profit is up to of 33.4bn, up 27.7 per cent from a year earlier.
China Citic Bank Corp., the lending unit of the nation’s largest investment firme said first-quarter profit climbed 51 percent .
Bank of China Ltd., profit jumped 28 percent on growth in higher interest and fee income.
Profit for the three months ending March 31 was 35 billion yuan.

Agricultural Bank of China said its first quarter net profit grew 36 percent from a year earlier .

Devaluation of the dollar, economic problems, political tensions, inflation, and exchange rates are other factors that have also contributed on rising gold prices.
http://www.prlog.org/11466845-gold-demand-in-china-is-set-to-rise-20-in-2011.html

Sahit_Muja
President and CEO
Albanian_Minerals
New York

Source: http://online.wsj.com/community/groups/oil-921/topics/gold-demand-china-set-rise