If we can believe the World Gold Council, demand for gold from China will rise sharply in the coming years. Even more, the World Gold Council suggests that demand from China will overshadow demand from India, which is where the biggest chunk of global demand came from last year. Naturally, a lot of attention has been spent on the recent disappointing data from China. Nevertheless, British bank HSBC does not expect a weaker economy to have a drastic impact on the gold market in Asia.

Demand for Gold

Despite slower growth, the Chinese economy is still growing. This supports the expectations of rising demand for gold from China, in HSBC’s opinion. The expectation is based on a growing average income in the middle class and the upper middle class according to a commodity analyst at the bank. The bank also mentioned that its Chief China economist, Qu Hongbin, expects the government to take additional monetary measures to support the country’s economy going forward.

Demand from China

According to the World Gold Council demand for gold in China will outpace demand from India. The organization expects Chinese demand for gold to rise in the coming 4 years by about 25% as the Chinese population becomes wealthier. Consumer demand will most likely lag a bit this year still, because a lot of consumers bought gold after the strong price drop in 2013, says the World Gold Council. Last year, China was good for 28% of global demand for gold.