By
Bloomberg
Published
October 28, 2024
Demand for gold in China, the world's biggest consumer, plunged by more than a fifth in the third quarter as record prices and a sluggish economy hit consumption, especially for jewelry.
Total demand fell 22% to 218 tonnes in the three months to September, according to Bloomberg calculations based on data from the China Gold Council on Monday. Jewelry consumption fell 29%, to 130 tons, while bullion and coin consumption fell 9%, to 69 tons.
Gold prices have risen by about a third this year, hitting a new high last week, due to increased buying by central banks as well as sustained haven demand from investors. That increase has made jewelry purchases much more expensive at a time when many Chinese consumers are already feeling the pressure of a prolonged slowdown in the economy.
During the first three quarters, gold consumption fell 11% to 742 tonnes, according to the council. Last month, non-monetary imports fell to 97 tons, 22% less than a year ago, although they increased compared to August.
