WGC: Chinese Gold Demand to Benefit from Aggressive Economic Stimuli

SEATTLE (Scrap Monster): A recent research from the World Gold Council (WGC) describes how the Chinese government's strong economic stimulus initiatives have affected the demand for gold in the nation.

In an attempt to help the faltering economy and increase household confidence, the Chinese central bank recently unveiled its most extensive economic stimulus measures since the COVID-19 outbreak. In order to guarantee the revival of the declining housing market, the nation has pledged more fiscal policy support.

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It is expected that the aforementioned actions will contribute to the nation's economic expansion. A lighter mortgage load will encourage investor and consumer confidence, which will stimulate the real estate market and increase GDP. The demand for gold in China is predicted to increase as economic expansion picks up speed. According to the WGC research, gold jewelry, bars, and coins would be the most likely beneficiaries.

There has been pressure on the nation's gold demand for a while. The Shanghai Gold Exchange's (SGE) gold withdrawals have stayed far below their historical norm.The Chinese gold demand in 2024 has remained well below its long-term average. However, the anticipated economic growth will act as the fundamental driver of Chinese gold demand.