Gold Council: Chinese Gold Demand Plunged in H1 2024

SEATTLE (Scrap Monster): Gold demand in China- the world’s largest bullion consumer, has cracked during the initial six months of 2024, mainly on account of record-high prices for the yellow metal. The country’s jewellers reported huge dip in sales during this period, as buyers are seen waiting for a dip in prices before venturing out into fresh gold purchases, said the quarterly report published by the China Gold Council.

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The total demand for bullion recorded significant fall by 6% during Jan-June ’24 to 524 tons. The demand fall was exacerbated by a 52% dip in jewellery purchases in the second quarter alone. The purchases of jewellery registered 27% decline in the first half of the year. This decline was partially offset by 47% surge in sales of gold bars and coins, the Council report said.

The gold purchases by consumers as well as the Chinese central bank during the initial three-month period of the year had driven gold prices to successive records. However, things turned around during the second half, with retail purchases plummeting. The People’s Bank of China too halted purchases in May and June this year.

The super-weak sales has a lot to do with the recent rally in gold prices, but this is assumed to be also due to falling personal incomes.