Chinese Gold Demand Remains Resilient Amid Rangebound Prices

Despite gold prices remaining rangebound in the second quarter after a significant correction in Q1, Chinese physical gold investment demand remained robust.

Chinese investors drove last year's gold bull market, with Western investors generally sitting out until the end of the year. In Q2, Chinese retail gold investment demand fell by 48 percent from Q1's all-time high of 207 tonnes, but still ranked as the third-highest Q2 since 2010.

When adjusted for the 29 percent year-over-year increase in local gold prices, Chinese retail gold investment set a second-quarter record. Through the first half of 2026, retail gold investment demand was up 31 percent, with Metals Focus analysts noting that physical investment generally softened due to price declines across major precious metals.