On Friday, we reported on the important thing findings from the World Gold Council’s quarterly report on Gold demand within the second quarter and first half of the 12 months. The info is price taking a second take a look at. The weak point in jewellery demand was significantly evident in China and India, because of the sharp rise in costs, Commerzbank’s commodity analyst Carsten Fritsch notes.
Gold demand from non-public households in China declines
“Jewellery demand in China fell by 28% to 194 tons within the first half of the 12 months, reaching its lowest stage in a primary half since 2009, aside from 2020, which was affected by the coronavirus pandemic. In India, jewellery demand amounted to simply 160 tons within the first half of the 12 months, representing a 20% decline in comparison with the earlier 12 months and the second-lowest stage in no less than 25 years, a fair decrease stage having been solely reached in 2020.”
“In worth phrases, jewellery demand remained unchanged in China, bearing in mind the sharp rise in costs, and even elevated in India. The image was utterly completely different for demand for bars and cash. At 239 tons, this reached its highest stage in 12 years in China within the first half of the 12 months, considerably exceeding jewellery demand.”
“In India, demand for bars and cash additionally rose year-on-year to 93 tons. This cushioned the weak point in jewellery demand, with a end result that Gold demand from non-public households in China declined by solely 6% year-on-year within the first half. In India, the decline was an excellent 12% nonetheless. The info impressively reveal the twin function of Gold as a price-sensitive client good and as a price-driving asset.”
