Yellow metal loses shine with investors

Yellow metal producers in China may see further profit erosions as gold prices are set to decline in the coming years, amid expectations of an interest rate hike by the US Federal Reserve and a strong dollar, industry sources said.

Song Xin, president of the China Gold Association, said on Monday international gold prices are seeing a downtrend after the sharp drop in 2013, and it is likely to become a "new normal" for the next couple of years.

"This, in turn, will affect the profit of many Chinese gold companies after deflation in costs and commodity prices," he said.