Special topic: the World Gold Council: global gold demand remains strong, pushing gold prices to record highs
Demand for gold bars and coins surged 68% in the first quarter compared with the same period last year.
According to the World Gold Council, China's demand for gold bars and coins was 110 tons in the first quarter, a year-on-year surge of 68%, the strongest since 2013.GcashbingoplusIn the first quarter of the year. In the first two months of the year, the weakness of the renminbi, concerns about the property market and volatility in the stock market, mainly concentrated in January, continued to boost domestic investor demand for preservation of assets, boosting sales of gold bars and coins. The renewed sharp rise in new household deposits also reflects the general caution among domestic investors. The rise in gold prices in March (+ 10%) has boosted domestic investors' interest in physical gold. In addition, the World Gold Council believes that the continued decline in domestic interest rates and the demand for gifts around the Spring Festival holiday have also boosted the demand for gold bars and coins.
The attractiveness of gold is still expected to increase
The World Gold Council said domestic retail investment demand for gold is likely to remain healthy in the coming quarters. In order to support the economy, expand domestic demand and boost confidence, a sound and appropriate domestic monetary policy may further lower interest rates and the attractiveness of gold is expected to increase in the context of a decline in local opportunity costs. Second, retail investor interest in gold is likely to continue to rise as the record-breaking pace of gold purchases by central banks around the world continues to attract attention. In addition, the weakness of the property market, the potential volatility of the renminbi exchange rate and the possibility of increased global geopolitical tensions may also contribute to the growth of retail investment demand for gold.
The fluctuation of gold price may become the main resistance to the sale of gold coins and bars.
As gold prices continue to soar, the potential volatility of gold prices is likely to deter investors, and the volatility of gold performance may be the main resistance to sales of gold bars and coins in the coming quarters. The possibility of a slowdown in China's economic growth may also shrink the budgets of Chinese consumers to buy gold. However, factors such as uncertainty in the real estate market and renminbi assets, expectations of lower interest rates and likely continued gold purchases by the central bank may also provide a boost to domestic gold bar and coin investment.