Market update

The Bank of Japan (BoJ) waved goodbye to its negative interest rate policy on 18 March 2024, lifting its interest rate to a range of zero to 0.1%, the first rate hike since 2007.

日本銀行（日銀）は、2024年3月18日、マイナス金利政策を解除して政策金利を0～0.1％程度に引き上げました。利上げは2007年以来となります 。

The traditional Defined Contribution (DC) investment portfolio made up of equities and bonds has come under increasing pressure in the last 18 months. Faced with rising inflation volatility risks and a highly uncertain economic backdrop, could now be the time to reconsider traditional thinking? We believe investors would benefit from expanding their “safe havens” options by considering gold.

As Chinese jewellery retailers shook off the pandemic, many strode into 2023 with strong expectations. But the recovery has been bumpy. In the face of economic uncertainties and the record-level renminbi (RMB) gold price, understanding current trends and future possibilities is fundamental to jewellers’ businesses.

The notable rebound in Q3 Chinese gold jewellery demand from the COVID-stricken Q2 and easing COVID restrictions paints a bright picture for the future. And our third annual gold jewellery retailer survey with China Gold News suggest that opportunities abound.

The traditional Defined Contribution (DC) investment portfolio made up of equities and bonds has worked well for investors for a long time. For much of the last 15 years, the environment that has afforded this success has been driven by central bank actions such as ultra-low interest rates and quantitative easing.

We believe that mandatory hallmarking will be positive for India’s gold market, improving transparency and giving consumers more confidence in the purity of the gold they buy. 

The Indian government’s sustained campaign for improving overall tax compliance through a carrot-and-stick policy was reflected again in the 2021-22 Union Budget, with a few material announcements that impact gold. 

Primarily driven by the COVID-19 pandemic and its far-reaching impacts, China’s gold demand in 2020 declined by 27% compared to 2019, the lowest recorded demand in a decade.

2020 has been a memorable year for China’s economy and its gold market.