China’s Gold Demand Seen Flat as Economy Slows, Price Drops

Gold demand growth in China, the second-largest consumer, may stagnate this year as declining prices put off investors and slower economic growth crimps sales, according to the mainland’s biggest gold-jewelry maker.

“The volatility and decline in the gold price since September, and the slower economic growth, have led to some subtle changes in the Chinese consumers’ attitude,” Lao Feng Xiang Co. Vice President Xin Zhihong said in an interview. Still, sales at the Shanghai-based jeweler that was founded in 1848 may grow at least 20 percent this year, Xin said in an interview.