Chinese Gold Appetite Wanes as Prices Soar and Economy Slows

China’s gold imports dropped significantly in July, falling 24% to 44.6 tons, the lowest level in over two years. This decline follows an even steeper 58% decrease in June. The reduced demand is attributed to record-high gold prices and a slowing Chinese economy, which have deterred consumers in the world’s largest bullion market. The sustained decrease in Chinese gold purchases could potentially hinder further price gains in the global market. This trend reflects the impact of high prices and economic uncertainty on discretionary spending, particularly affecting jewelry sales, while investment in gold bars and coins remains relatively stable as a store of value.