China’s strong interest in gold will continue through the end of 2023, according to the World Gold Council, while domestic gold prices soared to a record high on the back of the strongest investment demand in more than two years.
Demand for gold bars and coins in China rose 16% year-on-year in the Q3 and will “remain robust” in the final three months, the council said in its latest outlook.
The Shanghai Gold Exchange’s benchmark contract rallied on Tuesday to its highest ever, heading for a near-7% gain in October.
The attractiveness of gold in China will further increase if the People’s Bank of China continues to build up reserves in one of the longest series of purchases, the report said.
It also notes that a slightly later-than-usual Lunar New Year in 2024 could delay some demand for gold into the Q1 of next year.