China's Gold Consumption Diverges Amid Volatile Prices
China's gold market saw divergent demand trends in the first half of 2026, driven by volatile prices and new tax policies. Despite a decline in jewelry consumption, investment demand remained strong, with sales of gold bars and coins surging.
The China Gold Association reported that gold consumption rose 1.23 percent to 511.41 metric tons during the January-June period. However, this growth was largely due to increased industrial demand for gold in other uses, which saw a modest decline of 2.9 percent to 39.94 tons.
Gold jewelry consumption fell sharply by 33.88 percent to 132.13 tons, while investment demand drove purchases of gold bars and coins up by 28.42 percent to 339.34 tons. Temporary price corrections also boosted sales through banks.
The association attributed the decline in domestic output to temporary production halts at some mines due to safety inspections and rectification campaigns. Meanwhile, overseas production capacity of major Chinese gold companies expanded, with their overseas mined gold output rising by 21.43 percent year-on-year to 48.1 tons in the period.