Gold Demand in China Shows Strong Recovery in 2023

China's Growing Appetite for Gold

China's demand for gold has been on a steady upward trajectory in recent years, and 2023 is no exception. The World Gold Council's 2023 Report reveals that China's gold demand surged in 2023, with strong contributions from consumers, investors, and the central bank.

Record-Breaking Wholesale Demand

In April, China's wholesale gold demand reached new heights, driven by robust investment demand. This surge in demand was partially offset by a decline in the jewellery sector, but overall, the wholesale market remained strong.

Jewellery Demand Rebounds

After the disruptions caused by China's widespread Q2 lockdowns, gold jewellery demand made a significant comeback in Q3, rallying by 58%. This recovery was fueled by pent-up demand and a growing preference for gold jewellery as a safe haven asset.

Strong Consumer and Central Bank Demand

China's strong gold demand in 2023 was driven by both consumers and the central bank. Retail consumers continued to turn to gold as a store of value and a hedge against inflation, while the central bank increased its gold reserves to diversify its foreign exchange holdings.

China's Role in the Global Gold Market

China's growing demand for gold has had a significant impact on the global gold market. The country is now the world's largest consumer of gold jewellery and the top buyer of gold by central banks. This strong demand has helped to support gold prices and played a key role in shaping the global gold market landscape.