Commodities Buzz: Chinas Gold Jewellery Demand Fell Around 30% In Second Quarter

28 Jul 2022 , 12:24 PM

WGC noted in a latest update that China’s gold jewellery demand fell by 29% to 103t in the second quarter. This brought the H1 total to 281t, 17% lower y-o-y and 19% below its 10-year average. Major city lockdowns hampered gold consumption in April and May, with millions subjected to controls to limit contagion. Consumers’ inability to spend, together with decelerating income growth – the 1.5% y-o-y growth in Q2 was the weakest on record excluding 2020 – were main contributors to the weakness in Q2 Chinese gold jewellery demand. Gold jewellery consumption during H1 may have also been dented by a 5% rise in the local gold price as the RMB weakened. The council noted that changing consumer behaviour also played a role. The challenging environment encouraged precautionary savings: according to the People’s Bank of China’s quarterly survey, the tendency of local households reached the highest level on record in Q2.1 The fact that the second quarter is a traditional off-season for gold jewellery consumption further exacerbated the weakness.Powered by Commodity Insights