China's gold consumption declined 3.55% year-on-year in the first half of 2025 to 505.2 tons. However, the decline was slower than previous periods, following declines of 5.95% in the first quarter and 5.6% in the first half of 2024.
According to the China Gold Association, purchases of gold bars and coins—usually considered a measure of safe-haven demand—accounted for more than half of total consumption during the period, recording a 23.7% year-on-year increase to 264.2 tons, outpacing jewelry purchases, which fell 26% to 199.8 tons due to high prices.
The association added: "Escalating geopolitical conflicts, coupled with economic uncertainty, have further highlighted gold's role as a safe haven, leading to a significant increase in private investment in gold bars and coins."
The report, issued Thursday, indicated that spot gold prices, the most active contract on the Shanghai Futures Exchange, rose by about 25% during this period, according to Reuters.
Separately, official data from the People's Bank of China showed that the central bank increased its gold reserves in June for the eighth consecutive month
-255*160.webp)
-255*160.webp)
