Ever since year 2021, it has been bad times for gold jewelry as demand kept falling
Larger markets across the world have been seeing a weaker economic growth, and this could reflect in gold demand. Going by what the World Gold Council estimates, the weaker economic growth could pull down the demand for gold jewelry, going forward.
Major reasons being attributed to this scenario point to the stringent policy that China has undertaken with regard to Cobid-19 management. Besides this, the Chinese real estate sector going through its worst phase could also affect the demand for gold jewelry. It isn’t just China that would have a say on the falling demand of gold.
India too, which is a top consumer of the yellow metal, may also witness lower buying due to the falling rupee and a higher import duty, a news story quoting the World Gold Council report said.
Various factors take off the shine on gold jewelry
Looking back, one gets to understand that jewelry demand grown weaker since year 2021. This situation needs to be attributed to the multiple lockdowns that the China government enforced. Adding to this was the strengthening dollar.
With the dollar climbing against the local currency, it had become extremely expensive for customers to go for gold at the marketplace. Further, the Russian invasion and military action on Ukraine messed up things even further, forcing a slump of record levels.
WGC sees economic weakness impact
The World Gold Council is of the opinion that several nations have been facing economic decline, forcing major crises in terms of cost of living and spending power. Consumers haven’t been able to spend as freely as they used to. With a squeeze on spending ruling the roost, consumer demand has looked southward.
The trend is likely to continue, as there haven’t been hopes on the economic front. The remaining days of the year are likely to see a flat nature when it comes to gold-buying, as central banks of nations all around could bank on a tougher monetary policy.