China’s Demand for Gold Remains Stagnant in First Half of 2020, Rebound Anticipated by End of Year

Despite gold prices reaching record levels amid the coronavirus pandemic, the demand for the precious metal by the one of the world’s biggest gold-consuming countries has remained relatively stagnant. According to the latest data depicting gold withdrawals from the Shanghai Gold Exchange, the first half of 2020 suggests that China’s demand for gold has largely been slow to recover, despite draconian coronavirus mitigation efforts that have for the most part eradicated the severity of the outbreak.

Given that China’s demand for gold is highly dependent on the income levels of the middle-class society, and since the coronavirus pandemic has caused the Chinese economy to experience diminished growth, gold withdrawals from the Shanghai Gold Exchange have also been impacted.

However, according to mining engineer Lawrence Williams, if demand continues to remain weaker this year, then there is a probable chance that the 2020 total will not exceed 1,000 tonnes – the lowest amount in over 10 years. Although a 500 tonne reduction in Chinese gold consumption is likely, the second half of 2020 may be more optimistic in the event that a resurgence of the virus does not occur and the economy can get back on track to pre-pandemic levels.

Information for this briefing was found via Sharps Pixley, Gold Hub, and the Shanghai Gold Exchange. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Twin Mine Collapse In China: At Least 11 Dead, More Missing

An open pit coal mine in China’s northern Inner Mongolia region collapsed on Wednesday, killing...

Monday, February 27, 2023, 05:19:00 PM

Staude: Bullish On Gold, Bearish On Copper? – The Daily Dive

On today’s Daily Dive, we welcome back John-Mark Staude, CEO of Riverside Resources (TSXV: RRI)....

Wednesday, February 9, 2022, 01:30:00 PM

Raytheon CEO Argues Against Decoupling From China: “There Is No Alternative”

Western manufacturers face the complex task of reducing risks associated with their operations in China,...

Wednesday, June 21, 2023, 11:21:00 AM

Grande Portage Hits 20.70 G/T Gold Over 3.22 Metres At Herbert Gold Project

Further assay results have been released by Grande Portage Resources (TSXV: GPG) related to its...

Tuesday, November 24, 2020, 09:20:04 AM

Tesla Shares Slip Below $600 Following Report of Steep China Sales decline

It appears that Tesla is headed even further into turbulent territory with China, as the...

Friday, June 4, 2021, 11:42:00 AM