Economics

Chinese Bullion Demand Takes a Hit in Risk to Gold Price Rally

  • Bullion consumption fell almost 6% in first half year-on-year
  • China’s sluggish economy weighing on luxury item purchases
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China’s gold demand has cracked in the face of record-high prices for the precious metal, with sales at the country’s jewelers in a funk as buyers hold off on purchases.

Total demand for bullion fell almost 6% from a year earlier in the first half to 524 tons, the China Gold Council said in a quarterly report. The data imply a dramatic 52% plunge in jewelry purchases in the second quarter, according to Bloomberg calculations.