(Kitco News) – Gold demand in China is showing signs of a strong rebound even as physical flows from the UK to the U.S. continue, while there are indications that solar demand for silver may be peaking, according to precious metals analysts at Heraeus.
In their latest precious metals update, the analysts noted that Chinese wholesalers appear to be anticipating a rise in consumer demand for gold. “Shanghai Gold Exchange (SGE) withdrawals, a key indicator of wholesale and fabrication demand, typically rise in December and January as fabricators stock up for the Chinese New Year, which fell on 29 January this year,” they noted. “Consumer demand tends to also adhere to similar seasonality.
Despite a strong start to 2024, cumulative withdrawals for the full year were among the lowest on record (excluding 2020), totalling 1,450 tonnes. This comes amid ongoing contractions in China’s jewellery industry, reflected in year-on-year revenue declines among major retailers such as Richemont, Chow Tai Fook and Chow Sang Sang. However, given that December 2024 withdrawals were up 23% month-on-month, January withdrawals could still align with the historical average of 190 tonnes (based on SGE data since 2016).”
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