Limp in jewellery amid AI Contributions Growth 

 “2023 was marked by surprising resilience in jewellery and technology demand. We consider it likely that last year’s levels will be repeated in 2024. Indian jewellery demand should continue to benefit from the purring of a healthy economic engine, although high prices will potentially present a greater headwind”, said World Gold Council.

China’s gold jewellery demand is likely to remain stable: supported by consumers searching for value preservation, but challenged by an expected fall in wedding numbers, an elevated gold price and consumer preference for light-weighted products, all of which will present headwinds.

Western demand is at risk of succumbing to the cost-of-living crisis as well as a higher gold price. But there is some potential for real incomes to play a role in reviving demand towards the end of the year, should inflation continue to abate. Middle Eastern demand is also likely to slow somewhat and we expect to see a continued preference for investment products over jewellery.

Technology demand proved another surprising element in 2023, churning out stellar growth in Q4, albeit from a low base. Guidance from major chip manufacturers suggests 2024 will be a bumper year for semiconductors, with the AI sector a major contributor. As such, technology demand is likely to be somewhat insulated from high prices and a slowing global economy.

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