China insurers' plan to invest in gold could boost market

The programme permits ten insurance firms to allocate up to 1% of their assets.

A new pilot programme in China allowing insurers to invest in gold for the first time could unlock billions of dollars for the metal, further driving its record-breaking rally, reported Bloomberg.

The programme, which took effect last Friday, permits ten insurance firms, including PICC Property & Casualty Co. and China Life Insurance Co., to allocate up to 1% of their assets to bullion. 

According to Minsheng Securities Co.,$27.4b in potential investment.  

Gold prices have reached new highs, with the additional demand from Chinese insurers expected to provide further support to the market.