China's Divergent Gold Demand Trends Amid Volatile Prices

China's gold market is experiencing divergent demand trends in the first half of 2026, according to the China Gold Association. Despite volatile prices and new tax policies, strong investment demand has driven purchases of gold bars and coins.

Gold consumption rose 1.23 percent to some 511.41 metric tons during the first six months of this year, with jewelry consumption declining by 33.88 percent to 132.13 tons. Meanwhile, gold bar and coin consumption surged 28.42 percent to 339.34 tons.

The association noted that elevated and volatile gold prices have reshaped domestic gold consumption patterns. Strong investment demand has been driven by temporary price corrections boosting gold bar sales through banks.