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World Gold Council: Demand remains resilient in China Release date: 2022-04-29

China's gold jewelry consumption has almost returned to pre-pandemic levels, as shown by a relatively insignificant 8 percent year-on-year decrease to 177.5 metric tons during the first quarter, according to a senior executive of the World Gold Council.

The figure is in part due to the high comparison base last year and restricted consumption behaviors in March due to disruptions from the recent resurgences of COVID-19 in places such as Shanghai. It showed a steady market appetite in China for gold jewelry, Wang Lixin, CEO of WGC's China branch, said at an online media conference in Beijing on Thursday.

The epidemic, which requires social distancing, has influenced the sales of gold jewelry because customers tend to wear them during gatherings or other special events and buy valuable products such as gold jewelry through offline rather than online channels, he said.

However, such demand suppression is short-term, and he is very confident gold jewelry consumption in China will surge once the epidemic comes under control and pent-up demand is released.

Gufajin -- gold forged in ancient Chinese style -- is also gaining popularity among Chinese consumers, he added.

The WGC's latest Gold Demand Trends Report said China's gold jewelry consumption performance in the first quarter was relatively robust, holding comfortably above the Q1 five-year average of 154 tons and only 6 tons below its average for the last 10 years.

January and February saw upbeat sales for gold jewelry in China, lifted by festival sales ahead of the Chinese Lunar New Year holiday. Volume was also boosted by the continued efforts of retailers to promote heavier gold products.

The quarter also saw continued adoption of "per-gram" pricing among retailers alongside a continued push to market and promote heavier products to secure higher margins, according to the report.

By Liu Zhihua