China’s Gold-Buying Boom Faces Test at Start of Year, Industry Group Says

Employees assist customers looking at gold jewelry at a Luk Fook Holdings International Ltd. jewelry store in Beijing, China, on Monday, Feb. 8, 2021. Photo: Bloomberg

(Bloomberg) — The boom in China’s gold demand may take a knock at the start of this year on the back of virus lockdowns and slower economic growth, according to the World Gold Council.

While demand rebounded more than 50% last year on a stronger economy and easing Covid-19 measures, consumption early this year could be challenged by an increase in virus-related restrictions and weaker growth, the WGC said in a quarterly report. A trend of fewer weddings may also threaten jewelry purchases, a key source of demand in the world’s top gold buyer, it said.