Chinese Gold Demand Remains Resilient Amid Rangebound Prices
Chinese investors continued to show a strong appetite for gold in the second quarter of this year, despite prices trading in a relatively narrow range. According to data from the World Gold Council and other market sources, Chinese demand for gold remained steady, with buyers allocating to gold through bars, coins, and exchange-traded products.
The resilience of Chinese investment demand for gold reflects a broader trend of risk diversification among Chinese households, who have increasingly turned to gold as a store of value amid economic uncertainty and property market weakness. Gold prices in the second quarter were rangebound, but this did not deter Chinese buyers, who viewed any dips as buying opportunities.
The People's Bank of China continued its official gold purchase program, although at a slower pace than in previous quarters, providing an additional floor under prices. Local premiums in the Shanghai Gold Exchange remained elevated at times, signaling sustained physical demand.