China reports slight increase in gold consumption

China's gold consumption saw a slight increase in the first half of 2026, reaching 511.41 metric tons, up 1.23 percent year-on-year, according to the industry data released by the China Gold Association (CGA) on Thursday.

Demand for gold jewelry plummeted 33.88 percent year-on-year to 132.13 tons, as consumers became hesitant to make purchases amid soaring retail prices. In contrast, robust investment demand pushed the consumption of gold bars and coins to 339.34 tons, surging 28.42 percent.

Meanwhile, persistently high gold prices have pushed up production costs for industrial enterprises, leading to a 2.9 percent decline in industrial and other gold uses, which stood at 39.94 tons for the first six months.

On the supply side, China's gold output from domestic raw materials dropped 14.62 percent year-on-year to 152.91 tons.

The CGA attributed this decline to comprehensive safety inspections, rectifications, and special environmental governance campaigns conducted in key gold-producing provinces. These strict regulatory actions led to temporary production halts at certain mines as they underwent mandatory self-inspections to ensure high-quality, sustainable development in the sector.

However, gold produced from imported raw materials increased by 4.62 percent, adding 3.40 tons to reach 77.08 tons. Combined, China produced 229.99 tons of gold from both domestic and imported raw materials, representing a 9.01 percent decrease compared to the same period last year.

Despite domestic supply constraints, China's major gold enterprises maintained stable operations and orderly capacity expansion at their overseas mines.

In the first half, overseas mine production by these large groups reached 48.10 tons, a robust 21.43 percent year-on-year increase, the CGA said.

At the institutional level, China's central bank continued its strategy of optimizing and diversifying its official foreign exchange reserves, adding 40.12 tons of gold in the first half.

This marked the 20th consecutive month of accumulation spanning from November 2024 to June 2026, pushing the nation's total gold reserves to a massive 2,346.45 tons and firmly securing its position as the fifth-largest holder globally.

zhengxin@chinadaily.com.cn