The demand for gold in China fell 3.5% year -on -year in the first half of the year, according to the Chinese Gold Association, says Carsten Fritsch, a commerzbank raw material analyst.
Investment demand is significantly more important for price trends
The strong demand for ingots and coins, which increased 24% to 264 tons, avoided a more pronounced fall. This almost compensated the 26% drop in the demand for jewelry to 200 tons. It is also remarkable that the demand for bullion and coins was greater than the demand for jewelry.
“While the demand for jewelry suffered from record prices, the demand for bullion and coins benefited from the high level of uncertainty caused by the tariff policy of US President Trump. The data highlights the double role of gold, which on the one hand serves as a reserve of value and secure refuge, but on the other hand it also has a component with a contrasting development in the jewelry demand.”
“The investment demand is significantly more important for price trends. The demand for jewelry, on the other hand, has a countercyclical effect and, therefore, serves to stabilize prices.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
