China's Economic Woes Lead to Record Gold Buying Spree

As China grapples with economic slowdown, its significant pivot towards gold has notably influenced global demand, setting new records. The easing of pandemic restrictions has not alleviated the economic stress from a sluggish manufacturing sector, high debt levels, and a property market crisis. This shift has positioned the People’s Bank of China as the largest gold buyer last year, a move highlighted by the World Gold Council’s recent report. Despite a 5% drop in global gold demand excluding OTC market trades, the inclusion of OTC transactions reveals an unprecedented total demand of 4,899 metric tonnes (about 5,400 tons) for the year, with the average gold price reaching a record high of US$1,940 per ounce, surpassing the previous year’s figures.