Chinese Gold Demand Remains Resilient Amid Rangebound Prices

Chinese physical gold investment demand remained strong in Q2, despite gold prices trading sideways after a big correction in Q1. According to Metals Focus, Chinese retail gold investment fell by 48% quarter-on-quarter to 107 tonnes, but this was skewed by an all-time high of 207 tonnes in Q1.

However, when considering the year-over-year increase in the local gold price, Chinese retail gold investment demand set a second-quarter record. Investment gold buying was primarily concentrated in April and the first weeks of May, with volumes remaining healthy on an annual basis.

The data from Metals Focus shows that despite slowing from the exceptional levels seen in Q1, Chinese gold demand continued to be strong in Q2, ranking as the third-highest quarter since 2010. The forecast for H2 is a 20% year-over-year increase to around 500 tonnes.