China's Gold Investment Surges Past Jewellery Demand 2.5x

China's gold market has seen a significant shift in the first half of 2026, with investment demand outpacing jewellery purchases by a factor of 2.5. According to data from the China Gold Association and specialist analysts Metals Focus, retail bar and coin demand rose 28.4% year-on-year to 339.3 tonnes, while jewellery demand fell 33.9% to 132.1 tonnes.

This trend is confirmed by separate numbers from Metals Focus, which show that China's jewellery demand in Q2 2026 hit a record low of just 50 tonnes, down 27.7% from the same period last year. In contrast, retail gold bar and coin demand rose 8.7% per year to 137.3 tonnes.

The sharp increase in global and domestic Chinese gold prices has contributed to this shift towards investment. The quarterly average Yuan gold price climbed from CNY420 per gram in Q1 2023 to a record CNY1,088 in Q1 2026, an increase of 159%. While the price fell 9% quarter-on-quarter to CNY990 in Q2, it still set a new half-year record above $1037 per gram.