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Gold February 09, 2018 04:30:17 AM

WGC Spots 4% Surge in Gold Jewellery Demand in 2017

Paul Ploumis
ScrapMonster Author
The Chinese annual gold jewellery demand rose 3% from 630.4t in 2016 to 646.9t in 2017, mainly aided by a 6% growth in Q4 alone.
WGC Spots 4% Surge in Gold Jewellery Demand in 2017

SEATTLE (Scrap Monster): The Demand Trends Report for the full year 2017 published by the World Gold Council (WGC) indicates modest rise in global gold jewellery demand, mainly driven by demand recovery in key markets including the US, India and China. The full-year gold jewellery demand surged higher by 4% over the previous year to total 2,135.5t, registering year-on-year growth for the first time since 2013.

The Indian gold jewellery demand surged higher by 12% from 504.5t in 2016 to 562.7t in 2017. The demand witnessed sharp recovery during the last quarter of the year. The quarterly demand totaled 189.6t, hitting the highest Q4 levels in nearly 17 years. Fall in gold prices, improved festive demand, easing of gold purchase regulation by the government and heightened rural sentiments resulted in elevated demand for gold jewellery in Q4 last year. The WGC expects the recovery in market demand in India to persist in 2018.

ALSO READ: India's Gold Jewellery Exports Surged 27% in December

The Chinese annual gold jewellery demand rose 3% from 630.4t in 2016 to 646.9t in 2017, mainly aided by a 6% growth in Q4 alone. The Chinese retailers introduced new product offerings that included premium gold jewellery products including 18-carat, 22-carat and 3D hard products. Enhanced shopping experiences and sales through online platform also contributed to the increased demand. The WGC Demand Trends Report states that the outlook for Chinese jewellery demand looks quite positive.

Vietnam emerged as the strongest gold jewllery market in the region, registering 7% growth in annual demand. Annual demand declined by 1% in the Middle East. Weak local currency continued to impact demand in Egypt. Turkey too witnessed slowdown in jewellery demand. On the other hand, the US demand improved by 3% to 122.1t. But, Europe registered 3% decline in annual jewellery demand in 2017.

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