Wednesday, July 2, 2025

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

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Russia Agrees to Grant China Access to Major Trade Route, Giving Security Issues for Japan

In a significant geopolitical shift, Russia has agreed to grant China access to navigate the...

Tuesday, June 18, 2024, 04:26:00 PM

China Wants To Contain Selling, Orders State Banks To Purchase Stocks Instead

China is reportedly directing its state banks to purchase stocks, hoping to prevent excessive selling....

Monday, September 26, 2022, 12:09:09 PM

CME Group Increases Gold Contract Margin Requirements 9.6%

The CME Group is looking to slow the rise in gold futures yet again. For...

Monday, April 13, 2020, 09:28:24 PM

Mike McGlone: Bitcoin Is Replacing Gold – The Daily Dive

On this episode of the Daily Dive, Cassandra sits down with returning guest Mike McGlone,...

Friday, August 20, 2021, 01:30:00 PM

Futures Plummet, Gold Slated for 3rd Week of Gains as Ukraine-Russia Tensions Escalate

Any confidence of a de-escalating situation between Ukraine and Moscow came to an abrupt halt...

Monday, February 21, 2022, 05:34:35 PM