Chinese Consumers Cool on Gold — Central Bank Demand Remains Strong

China, traditionally a major consumer of gold, is showing signs of weakening demand for gold jewelry, as evidenced by recent data and industry reports.

This trend is attributed to rising gold prices and consumer resistance to higher costs. Despite this decline in consumer demand, central bank purchases of gold remain strong, contributing significantly to gold’s price performance in recent years.

The shift in Chinese consumer behavior towards gold jewelry contrasts with the country’s continued strategic interest in gold as a reserve asset.