Indians and Chinese buy gold because they love it, not because they are fearful of the economy. This article describes this type of demand as the love trade.
Anyone who is serious about what affects the price of gold, must seriously look more deeply into the live trade.
Here's a direct quote and chart from the article:
"You can visually see the strength of the Love Trade below in the year-over-year change in total consumer demand in tons for gold jewelry, bars and coins. Indian demand grew the most, increasing 27 percent compared to the previous year. Demand for jewelry, bars and coins in the greater China area increased 20 percent, as “seasonal strength in China, related to Chinese New Year purchasing, exceeded all previous peaks, marking a new record quarterly high,” says the WGC. Even U.S. residents had a love for gold, with demand growing 22 percent over the previous year."