WGC Forecasts Dwindling Chinese Gold Investment Demand

SEATTLE (Scrap Monster): The 2025 forecast study for the Chinese gold market was released by the World Gold Council (WGC). The gold trade association predicts that the demand for gold jewelry will stabilize, but that the desire for investments in the Chinese market will decline over the course of the next year.

The research claims that local gold prices saw a significant 28% increase till November of this year, making it the nation's best-performing asset thus far this year. Several variables, including declining local currency, strong investment momentum, and economic concerns, are important contributors to gold's amazing performance. The mismatch between supply and demand in the local gold market was yet another important factor.

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In 2025, WGC anticipates that the demand for investments and the consumption of gold jewelry will continue to differ. The demand for gold jewelry is expected to fall by 3% in 2025, according to the yearly model. In the meantime, the quarterly model predicts that the demand for gold jewelry in China will drop by double digits in 2024.

In 2025, it is anticipated that the demand for gold bars and coins would still be strong, albeit at a slower rate of increase. Support is probably going to come from an expected decline in interest rates and an increase in the push on currency depreciation.

In short, WGC expects Chinese overall gold demand to stabilize in the coming year.