Gold demand in China fell by 3.5% year-on-year in the first half of the year, according to the China Gold Association, Commerzbank’s commodity analyst Carsten Fritsch notes.
Investment demand is significantly more important for price trends
Strong demand for bars and coins, which rose by 24% to 264 tons, prevented a sharper decline. This almost offset the 26% slump in jewelry demand to 200 tons. It is also noteworthy that demand for bars and coins was higher than demand for jewelry.”
“While demand for jewelry suffered from record high prices, demand for bars and coins benefited from the high level of uncertainty caused by US President Trump’s tariff policy. The data highlights the dual role of Gold, which on the one hand serves as a store of value and safe haven, but on the other hand also has a component with a contrasting development in jewelry demand.”
“Investment demand is significantly more important for price trends. Demand for jewelry, on the other hand, has a countercyclical effect and thus serves to stabilize prices.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
