Data provided by the China Gold Council showed that in the third quarter, demand for gold in China - the world's largest consumer - fell by 22%, to 218 tons. Jewelry consumption fell by 29% last quarter, to 130 tons, while demand for bullion and coins decreased by 9%, to 69 tons. The latest change was caused by record high gold prices and the weakness of the Chinese economy, which negatively affected the consumption of precious metals.
Since the beginning of this year, gold prices have risen by more than 30% due to increased purchases by central banks, as well as steady demand for safe haven assets from investors.
The China Gold Council also stated that in the first three quarters of 2024, gold consumption fell by 11%, to 742 tons. Meanwhile, in September, non-monetary imports decreased by 22% per annum, to 97 tons.
Last month, a report from the People's Bank of China (PBOC) showed that the Central bank held back on buying gold for its reserves for a fifth straight month in September. China's gold holdings stood at 72.8 million troy ounces. The value of the gold reserves, however, rose to $191.47 billion from $182.98 billion at the end of August.