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Gold loses sparkle for wary buyers in China's jewellery hub

Shenzhen

AS Chinese consumers cut back on gold purchases for a second year in a row, nowhere is the slowdown being felt more than in the country's once-bustling jewellery manufacturing and retail hub of Shuibei.

Gold demand has taken a hit from a slowing economy and Beijing's anti-corruption drive, which has cut demand for luxury products, but there are fears of a more protracted loss of confidence among buyers in the world's top consumer of the precious metal.

With buying in No 2 consumer India also soft, another year of weak Chinese demand would help pile more pressure on global gold prices languishing near six-year lows.

The hundreds of jewellery stores in Shuibei, a district of Shenzhen only...

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