China's Gold Production Dives Amid Rising Overseas Output
China's gold production plummeted by 14.62% to 152.908 metric tons in the first half of 2026, according to the China Gold Association. The decline was largely attributed to mine safety inspections and production suspensions in key gold-producing regions. However, a 21.43% surge in overseas mine output from major Chinese gold groups helped cushion the overall decline.
The market saw a stark structural divergence: investment demand for gold bars and coins soared 28.42% to 339.336 tons, while jewelry consumption plummeted 33.88% to 132.133 tons. Trading volumes on both the Shanghai Gold Exchange and Shanghai Futures Exchange contracted, but turnover values climbed sharply.
The People's Bank of China extended its gold purchasing streak to 20 consecutive months, with official reserves reaching 2,346.45 tons by end-June. Despite a pullback in international gold prices from their highs in the first half of the year, Chinese retail investment appetite for the precious metal showed no signs of cooling.