Demand rose by three tonnes year-on-year to stand at 2,093 tonnes. — China Daily
BEIJING: China continues to lead global demand for gold jewellery and secured the top spot in worldwide central bank gold purchases last year, making it an important force driving global consumption of the precious metal, says a report by the World Gold Council (WGC).
The global jewellery market proved to be resilient amid record-high prices last year as demand rose by three tonnes year-on-year to stand at 2,093 tonnes.
China supported the robust global total, achieving a 10% increase in demand, which totalled 630 tonnes for gold jewellery in 2023, offsetting a 6% decrease in India, which ranked second worldwide, said the WGC.
The council attributed the growth in demand for gold jewellery in China to overall economic recovery in the country.
As for gold bars and coins, China’s 28% growth in demand, which was 280 tonnes in all for 2023 – combined with notable totals in India (185 tonnes), Turkiye (160 tonnes) and the United States (113 tonnes) – offset plummeting demand from Europe, the council said.
Global central bank buying maintained a fast pace.
Annual net purchases stood at 1,037 tonnes, almost matching the 2022 record, falling just 45 tonnes short, the WGC said, with central banks from China, Poland and Singapore leading the pack.
Such strong gold demand has supported elevated prices for the precious metal. The benchmark London Bullion Market Association auction gold price ended 2023 at US$2,078.40 per ounce – a record-high year-end close.
The average 2023 gold price was US$1,940.54 per ounce – also a record – which was 8% higher than 2022, the council said.
“We know that central banks often cite gold’s performance in times of crisis as a reason to buy, which suggests demand from this sector will stay high this year and may help offset a slowdown in consumer demand (in other sectors) due to elevated gold prices and slowing economic growth (globally),” said Louise Street, a senior WGC analyst.
Looking to gold demand in China this year, Wang Lixin, chief executive of WGC (China), said while the traditional peak sales season before the Lunar New Year could drive robust performance in first-quarter gold jewellery demand, persistently high gold prices may exert pressure on China’s gold jewellery consumption afterward.
Wang said demand for gold bars and coins in China is expected to remain robust in 2024, although it might not reach the 2023 levels. — China Daily/ANN
