China's gold demand rebounds after 25% plunge

China's gold demand rebounds after 25% plunge

28 April 2015, 14:56

China's gold demand recovered in the first three months of 2015 after a 25% drop in 2014, MarketWatch reported, adding that increasing interest in gold as well as awareness in it as an investment will spur the country's demand further.

Gold consumption in China climbed 1.1% year-on-year to 326.68 metric tons in the first quarter of 2015.

A range of factors cause a previous plunge. Those include China's economic slowdown, the anti-corruption drive, and a consumption surge in 2013 leading to a cut in gold purchases for 2014.

Last year, due to a jump in jewelry demand, India replaced China as the world's biggest gold buyer, although both countries' total gold demand shrank from a year earlier, MarketWatch says referring to a Bloomberg report.

In the meantime, the China Gold Association said in a statement earlier this year that the trend in Chinese gold-demand growth hasn't changed despite a steep decrease in last year's consumption.

The 2014 drop was preceded by a "blowout surge" in 2013 triggered by a fall in gold prices, with the low prices "restraining investment demand" to a certain degree in 2014, the association said.

While China is the world's fastest-growing gold market, growing awareness in gold as an investment will continue to fuel the country's demand in this precious metal.

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