Commodities Buzz: Chinas Gold Jewellery Demand Bounces Back

1 Nov 2022 , 11:54 AM

The World Gold Council or WGC stated in a latest update that after the disruption of Chinas widespread Q2 lockdowns, gold jewellery demand staged a comeback in Q3, rallying 58% q-o-q to 163t. The y-o-y comparison shows a more modest 5% increase. Despite sporadic restrictions being imposed throughout the quarter, consumer sentiment in July and August was upbeat, aided by a pullback in the local gold price and the release of pent-up demand from Q2. Jewellery consumers were driven by investment motives more than usual, given the uncertain environment of continued sudden lockdowns, slowing economic growth and a weaker domestic currency. This boosted sales of plain 24K products, which are increasingly priced according to weight rather than per piece (yielding lower, and more transparent, labour charges). Consequently, retailers continued to focus their promotional efforts on heavier items in order to bolster profits. Powered by Commodity Insights