Gold Prices Set Records in China as Demand Rises

Record Gold Prices and Increasing Demand

This week, gold prices exceeded 5,100 dollars/ounce, reaching their highest value in history. Particularly in major trading centers like Shanghai and Hong Kong, intense demand for this precious metal has been observed. Analysts maintain their expectations that prices will continue to rise.

Expectations of Increase Until 2025

Among the main reasons for this rise are the purchases made by central banks to reduce their dependence on the US dollar and the increasing demand from investors seeking safe havens. Societe Generale analysts predict that gold could reach 6,000 dollars/ounce by the end of the year, stating that this forecast is quite conservative.

Supply Issues and Jewelry Demand

Simon Littmann, the general manager of Swiss Investors Corporation Limited, stated that he experienced the highest trading volume of his career in gold and silver trading this January. However, he added that high prices have negatively affected jewelry demand and that supply issues have played a significant role in this process.

Change in Demand Compared to Last Year

While interest in investment-grade bars and coins has increased in China, it has been observed that wholesale gold demand decreased by 11 percent last year due to high prices and increased taxes. This situation indicates expected changes in demand in the jewelry sector.