China's gold market, which experienced a record-breaking year in 2024, is poised for slower growth this year amid global macroeconomic shifts, according to the World Gold Council's latest forecast.

Gold prices in China experienced a record-smashing year in 2024, making it the best-performing asset in China during the period. The gold price in renminbi, represented by the Shanghai Gold Exchange, had surged by 28 percent as of end-November, as central bank and investor purchases of the yellow metal offset slowing growth in consumer demand, especially from China, the council said in its 2025 outlook.

In addition to gold's global drivers, domestic factors such as strong investment momentum — including sizable gold exchange-traded fund inflows and active futures trading — all contributed positively to the stunning performance of Chinese gold prices, it said.

The council believes that after hitting multiple record highs last year, notching its best yearly performance in a decade, gold is set for slower growth this year.

China has been the world's largest gold consumer for over 10 straight years. It has also been the world's largest gold producer for an impressive 15 consecutive years.

David Tait, CEO of the WGC, said earlier that the Chinese gold market, which is evolving from a follower to a leader, is expected to play a bigger role globally in the years to come.

China, with an influence that should extend beyond its borders, has incredible achievements that highlight the country's crucial role and influence in shaping the future of the global gold industry, Tait said.

"Gold has emerged as the best-performing asset in China ... outpacing other investment options by a wide margin," he added.

The WGC noted in its 2025 outlook report that China's gold market growth last year has outpaced most other asset classes, driven by sustained central bank purchases, robust consumer demand in Asia, ever-burgeoning global debt, as well as ongoing geopolitical uncertainties.

Industry experts believe that as the world's largest gold market alongside India, China plays a critical role in shaping global demand.

Zhou Maohua, an analyst with China Everbright Bank, believes several factors have boosted gold market sentiment, including constant new price highs, concerns about geopolitics, rising expectations for interest rate cuts in major economies and central banks' repeated purchases.

With domestic factors like currency movements and investment patterns strongly influencing local gold prices, the market remains a barometer for broader economic sentiment, said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

"China's gold market will continue to be a key driver of global trends. However, its future performance will depend on both domestic policy and global macroeconomic developments," Zhao said.

According to the council, gold could still benefit from several potential tailwinds. Central banks, which were major buyers of gold in 2024, may continue to increase their acquisitions. Additionally, any rapid deterioration in global financial conditions could drive investors to seek gold as a safe-haven asset, it said.

In China, a recovery in consumer demand could shift the dynamics. The WGC highlighted that Chinese consumers remained relatively subdued in their gold purchases in 2024 due to economic uncertainties. A rebound in consumer confidence could significantly bolster gold demand in the region, which, along with India, is one of the world's largest gold markets.

"Asia accounts for more than 60 percent of annual gold demand when central bank buying is excluded," the council said, emphasizing the region's critical role in the global gold market.

zhengxin@chinadaily.com.cn