The demand for gold in China, the world’s largest consumer, took a sharp dive in the third quarter as record prices and a sluggish economy impacted consumption, particularly in the jewelry sector.
According to calculations based on data from the China Gold Council, total gold demand fell by 22% to 218 tons in the three-month period ending in September. Jewelry consumption saw a significant decline of 29% to 130 tons, while demand for bars and coins dropped by 9% to 69 tons.
Gold prices have surged by approximately 33% this year, reaching a new peak last week. This increase is attributed to heightened purchases by central banks and continued safe-haven demand from investors. The rise in prices has made jewelry purchases much more costly, exacerbating the financial strain on Chinese consumers already facing a prolonged economic slowdown.
In the first three quarters of the year, gold consumption in China decreased by 11% to 742 tons, as reported by the China Gold Council. Non-monetary gold imports also saw a decline of 22% year-on-year in September, although there was a slight increase from the previous month.
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