Rebound in Chinese Jewellery Demand
Offset by Price Sensitivity in India in Q1

Heraeus Precious Metals, a global leader in the precious metals industry, reports on Gold jewellery demand in Q1 for China and India:

As the Chinese economy reopened in Q1, Chinese consumers bought 198 tonnes of gold jewellery – an eight-year high (source: World Gold Council).

The first quarter is seasonally strong for gold jewellery demand in China, and this was boosted by pent-up demand following the relaxation of Covid restrictions in late 2022. In contrast, India, the world’s second-largest consumer gold market, saw a 17% year-on-year decline in jewellery demand to 78 tonnes in Q1.

Consumers in India tend to be more price sensitive, postponing purchases when prices are rising. The gold price in rupee terms has been climbing sharply this year and achieved multiple new all-time highs.

Net global gold jewellery demand was flat year-on-year in Q1 at 478 tonnes, and the outlook for Q2 is mixed.

If very high prices are maintained, demand could continue to lose momentum in India and Q2 typically sees a dip in Chinese demand.