China’s 2022 gold jewelry demand seen supported by stable prices

“The relatively stable gold price outlook will provide support for gold jewelry demand in China’s market for 2022,” Wang Lixin, the Council’s managing director in China, said in a statement.

In terms of gold investment, demand for bars and coins is expected to rise as precious metals divisions of Chinese commercial banks will continue to push sales of physical gold products, added Wang.

“At the same time, the continuous decline of domestic interest rates and potential inflationary pressure could be supportive factors to boost demand for domestic gold investment in 2022.”

China’s gold consumption last year rose by over a third from 2020, led by uptake of gold jewelry, as its economy rebounded from the coronavirus impact, according to data from the China Gold Association.

This year, however, economic growth is expected to slow as falling factory activity, persistently soft consumption and a slowing property sector have dimmed China’s economic outlook.