Beijing : China emerged as a major force in the global gold market in 2023, with Chinese investors and households playing a pivotal role in driving gold demand, even as prices reached record highs, according to the World Gold Council’s latest quarterly report.
Key Findings from the World Gold Council’s Report: Chinese investment demand for gold, encompassing bars and coins, witnessed a significant surge of 28% in 2023, totaling 280 tons. Concurrently, jewelry consumption in China rose by 10% to reach 630 tons. The cumulative gold purchases in the country reached an impressive nearly 960 tons in the past year.
Louise Street, Senior Market Analyst at the World Gold Council (WGC), highlighted the substantial impact of China on the global gold market. “China was key to a lot of what was happening last year. When you look at the consumer sector, China is not the price-setting factor but it is providing a floor,” she stated.
India, the world’s second-largest gold consumer, witnessed a decrease in total gold purchases to 748 tons in 2023. Other notable contributors to global gold demand included the United States (249 tons), Türkiye (201.6 tons), and Iran (71.8 tons). The top ten list also featured Russia, Germany, Egypt, Vietnam, and Saudi Arabia.
The WGC’s report indicated that the combined demand from global central banks, along with the “blistering” demand from Chinese consumers, played a crucial role in propelling the price of gold to record highs in December. The yellow metal has consistently remained above $2,000 per troy ounce in the current year.
The global gold demand in 2023 reached an all-time high of 4,899 tons, with annual bar and coin investment experiencing a mild contraction, while annual jewelry consumption held steady at 2,093 tons, as per the WGC’s findings.
