Chinese investors and households have been buying gold as a refuge from local property and stock market mayhem, helping to support record prices for the haven asset, reports the Financial Times. China was the principal bright spot globally for gold jewellery and investment flows in 2023, according to industry group the World Gold Council’s quarterly report, as local property, equity and currency markets disappointed following the country’s exit from Covid-19 lockdowns.
Together with “blistering” demand from central banks, according to the WGC, Chinese demand helped push the gold price to record highs last month and keep it above $2,000 per troy ounce this year.
Chinese investment demand for gold—spanning bars, coins and exchange traded funds—grew 28% to 280 tonnes, largely offsetting a steep drop in Europe. The country’s jewellery consumption rose 10% to 630 tonnes last year, even as global demand remained flat.