Gold loses its luster for Chinese investors in Q2

Chinese investors' demand for gold has declined in the second quarter of 2019 due to the rising confidence of investors in the renminbi's exchange rate and the steady performance of the domestic stock market, experts said.

The World Gold Council said continued purchases by central banks in the world during the second quarter of 2019 meant global demand for the yellow metal rose by 1,123 metric tons, a rise of 8 percent year-on-year.

For investors, the demand for gold in China has seen some softening. Part of the reason behind this trend is that investors have become less worried about foreign exchange rates while the price of gold has increased significantly, especially in June. The demand for gold bars and coins has also declined by 29 percent year-on-year.