WGC Announced Gold Market Outlook for China in 2022

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) suggests a healthy outlook for China’s gold market in 2022, despite concerns around a potential slowdown in Chinese economic growth. The gold demand will likely remain strong in 2022. This follows 56% year-on-year surge in gold consumption in the country during the previous year.

The Chinese gold demand had rebounded strongly in 2021. The gold jewellery demand during the year touched 675 tonnes, significantly higher by 63% over the prior year, primarily driven by strong economic recovery and pullback in gold prices from the 2020 peak. The Chinese bar and coin demand too surged higher by 44% year-on-year to total 284 tonnes in 2021.

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Over the year, Chinese gold ETFs recorded a net inflow of 15 tonnes, despite weak gold prices. The ETF investors remained more tactical during the year, with holdings witnessing a jump in Q1 in line with price drop and a dip in holdings during Q2 with rebound in gold price, said WGC report.

Looking ahead, WGC expects a challenging year for economic growth in China. The country’s GDP growth could slow. The interest rates too are expected to stay low in 2022. The currency might face pressure. Despite all these challenges, Chinese gold consumption might rise further, said WGC.