Friday, November 29, 2024
26 C
Brunei Town

Latest

China’s demand for gold set to keep rising

ANN/CHINA DAILY – Experts anticipate a rise in gold investment due to economic and geopolitical uncertainties, likely to drive increased purchases of safe-haven assets, including gold coins and bars. The metal’s appeal to investors may also be bolstered if central banks maintain their gold acquisitions.

The demand for gold bars and coins in China surged to 82 metric tonnes in the third quarter despite soaring gold prices, marking a remarkable 66 per cent surge on a quarter-to-quarter basis and a 16 per cent year-on-year increase from the high base in the third quarter of 2022, said a World Gold Council report.

The report highlighted that this represented the strongest third-quarter performance since 2018, significantly surpassing the five-year average of 64 tonnes and the 10-year average of 61 tonnes.

Cumulatively, in the first nine months, China’s demand for gold bars and coins reached 197 tonnes, a robust 26 per cent growth compared to the same period in 2022, according to the report.

“The rising interest in gold bars and coins was primarily driven by investors’ safe-haven demand, supported by global geopolitical instability and weak performance of investment products denominated in Chinese yuan,” said Chief Executive Officer of WGC (China) Wang Lixin.

A shopper tries on a gold bracelet at a jewellery shop in Chongqing, China. PHOTO: CHINA DAILY

Wang pointed out that the ongoing gold purchases by central banks may have spurred investor interest in the yellow metal. According to the report, global net central bank purchases of 337 tonnes represented the third strongest quarter in WGC’s recorded history, although it failed to match the 459 tonnes seen in the third quarter last year.

Yet, demand from central banks year-to-date was 14 per cent ahead of the same period last year at a record 800 tonnes.

Wang said the difference between domestic and international gold prices was another reason behind the demand boom of gold investment.

On September 14, the single-day price difference reached a historic high of USD121 per ounce.

The benchmark LBMA (London Bullion Market Association) auction gold price averaged USD1,928.5 per ounce.

While this was two per cent lower than the record high set in the second quarter this year, it still represented a 12 per cent increase compared to the same period last year.

In terms of gold jewellery, China’s total demand in the third quarter amounted to 154 tonnes, marking a six per cent year-on-year decrease. However, it rose by 16 per cent compared to the second quarter, the WGC report said.

In the first nine months, China’s total demand for gold jewellery reached 481 tonnes, an eight per cent year-on-year growth.

spot_img

Related News

spot_img