Chinese consumers buy more gold as price plunges to lowest level in 10 months
Published: Jul 19, 2022 12:15 PM Updated: Jul 19, 2022 12:12 PM
Gold Photo: VCG
Gold Photo: VCG

The popularity of gold among Chinese consumers has bounced back recently as the price declined to the lowest point in 10 months with the gold future price in the New York Mercantile Exchange down to $1703.6 per ounce after four consecutive months.

Representatives of gold stores in Beijing said the gold price has been adjusted seven times since June due to international gold price decline, according to a CCTV report. A representative from the flagship store of China Gold Group in Beijing said the number of consumers asking about gold bars had nearly doubled and sale volumes were up 20 percent.

Data from World Gold Council (WGC) showed that gold withdrawals from the Shanghai Gold Exchange reached 140 ton in June, a 37 tons improvement from May and 7 tons higher year-on-year

WGC stated in its Gold Mid-year Outlook 2022 that investors face a challenging environment during the second half of 2022, needing to navigate rising interest rates, high inflation and resurfacing geopolitical risks.

Industry insiders noted that the US Federal Reserve raising interest rate lifted the value of the US dollar leading the gold price to plunge. The WGC suggested that rate hikes may create headwinds for gold and continued inflation and geopolitical risks may sustain demand for gold.

Global Times