China continues to lead global demand for gold jewelry and has secured the top spot in worldwide central bank gold purchases last year, making it an important force driving global consumption of the precious metal, said a report by the World Gold Council on Wednesday.

The global jewelry market proved to be resilient amid record-high prices last year as demand rose by 3 metric tons year-on-year to stand at 2,093 tons. China supported the robust global total, achieving a 10 percent increase in demand, which totaled 630 tons for gold jewelry in 2023, offsetting a 6 percent decrease in India, which ranked second worldwide, said the WGC.

The council attributed the growth in demand for gold jewelry in China to an overall economic recovery in the country.

As for gold bars and coins, China's 28 percent growth in demand, which was 280 tons in all for 2023 — combined with notable totals in India (185 tons), Turkiye (160 tons) and the US (113 tons) — offset plummeting demand from Europe, the council said.

Global central bank buying maintained a fast pace. Annual net purchases stood at 1,037 tons, almost matching the 2022 record, falling just 45 tons short, the WGC said, with central banks from China, Poland and Singapore leading the pack.

Such strong gold demand has supported elevated prices for the yellow metal. The benchmark LBMA (London Bullion Market Association) pm auction gold price ended 2023 at $2,078.40 per ounce — a record-high year-end close. The average 2023 gold price was $1,940.54 per ounce — also a record — which was 8 percent higher than 2022, the council said.

"We know that central banks often cite gold's performance in times of crisis as a reason to buy, which suggests demand from this sector will stay high this year and may help offset a slowdown in consumer demand (in other sectors) due to elevated gold prices and slowing economic growth (globally)," said Louise Street, a senior WGC analyst.

Looking to gold demand in China this year, Wang Lixin, CEO of WGC(China), said while the traditional peak sales season before Spring Festival could drive robust performance in first-quarter gold jewelry demand, persistently high gold prices may exert pressure on China's gold jewelry consumption afterward.

Wang said demand for gold bars and coins in China is expected to remain robust in 2024, although it might not reach the 2023 levels.