October 28, 2024 – China’s gold consumption fell by 11% in the first nine months of 2024, as rising gold prices dampened consumer appetite, according to data from the China Gold Association. The drop reflects both economic uncertainty and shifting consumer behavior in response to higher costs.
Soaring gold prices, driven by geopolitical tensions, inflationary concerns, and fluctuating currency values, have discouraged purchases. Gold, often viewed as a hedge against economic instability, has become less accessible for average consumers and small investors in China, who have scaled back their buying of jewelry and bullion.
The association highlighted that demand fell sharply in key segments such as jewelry and retail investment products. This marks a significant change, as China typically ranks among the world’s largest consumers of gold. Lower demand could also impact global gold markets, given China’s influence in the commodity sector.
The decline in gold consumption comes amid China’s broader economic challenges, including slower-than-expected growth and declining consumer confidence. With disposable incomes under pressure and high inflation, consumers are focusing on essential spending rather than luxury purchases, contributing to the slump in gold buying.
Analysts expect gold consumption to remain subdued unless prices stabilize, or there is greater certainty in the global economy.