Central Bank Buying Helps Keep Gold Above $2,000 Mark

Credit: Financial Times

"The robust demand from central banks is a significant factor in maintaining the price of gold above $2,000 per troy ounce."

Chinese investors and households have turned to gold as a safe haven amidst market turmoil in local property and stock markets, leading to record prices for the precious metal. China emerged as a key driver of global gold demand in 2023, with robust investment and jewellery consumption, fuelled by disappointing performances in property, equity, and currency markets following the country's exit from COVID-19 lockdowns. Strong demand from Chinese investors, along with central bank purchases, contributed significantly to pushing gold prices to record highs and maintaining them above $2,000 per troy ounce. Investment demand for gold in China grew by 28%, reaching 280 tonnes, while jewellery consumption increased by 10% to 630 tonnes, offsetting declines seen in Europe and supporting global demand.