China's Gold Dilemma: Rising Prices and Falling Jewelry Demand

30 July 2024

China recently held a gold conference that highlighted significant challenges in its gold market, including a slight increase in domestic gold production and a notable decline in jewelry consumption due to rising prices.

While gold imports surged, the People’s Bank of China has not made recent purchases, raising questions about its future buying strategy. The report indicated that overall gold consumption fell by 5.61% year-over-year, with jewelry purchases plummeting by 27% in the first half of 2024.

Despite these challenges, investment in gold bars and coins increased, reflecting ongoing interest amid economic uncertainty.

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