(Kitco News) – China’s gold consumption fell 3.54% in the first half of 2025, according to the latest data from the China Gold Association (CGA).
Gold consumption in China came in at 505.21 tonnes, the CGA said. The decline was especially pronounced in jewelry, with Chinese consumption of gold jewelry falling 26% compared with the first half of 2024 to 199.83 tonnes
Meanwhile, consumption of gold bars and coins surged 23.69% to 264.24 tonnes in H1.
Consumption of gold for industrial and other uses rose 2.59% from the previous year to 41.14 tonnes in the first half, the CGA said.
The CGA data aligns with the latest numbers from Ray Jia, Research Head, China at the World Gold Council (WGC), who noted that while China’s gold jewelry market was down in H1 2025, the Shanghai Benchmark Gold Price and ETF inflows both set semiannual records in the first half.
Jia pointed out that gold withdrawals from the Shanghai Gold Exchange (SGE) totaled 678 tonnes during the first half of 2025, an 18% year-over-year decline and 22% below the ten-year average.
“Jewellery demand has weakened amid the surging gold price, cautious consumer spending, and the industry’s continued consolidation,” he said. “But [the jewelry] sector’s weakness was partially offset by investment strength: the gold price rally, rising safe-haven demand – amid spiking US-China trade tensions particularly in April – and tepid performances of other domestic assets supported bar and coin sales.”
He warned, however, that June saw “cooling momentum in bar and coin investment as investors sat on the sidelines amid the range-bound gold price movement.”
ETF demand, on the other hand, recovered last month to conclude the strongest first half on record. “Chinese gold ETF flows turned positive in June, attracting RMB1bn (US$137mn),” Jia wrote. “With the US-China trade tensions easing and the RMB strengthening, safe-haven demand for gold cooled, resulting in limited changes in ETF flows.”
Chinese gold ETFs added $8.8 billion during H1 2025. “Inflows were driven by similar factors, supported bar and coin sales noted above,” he said. “Chinese gold ETFs’ total AUM surged 116% during the first half, reaching RMB153bn (US$21bn) by the end of June. Meanwhile, collective holdings jumped 74% to 200t.”
The People’s Bank of China also continued its streak of official bullion purchases last month. “The PBoC reported a 2t gold purchase in June, the eighth consecutive monthly increase,” Jia noted. “China’s official gold holdings now stand at 2,299t. China has announced non-stop gold purchases – of varying amounts – during the first half of 2025, totalling 19t. During this period, gold’s share of China’s total foreign exchange reserves rose from 5.5% in December 2024 to 6.7% at the end of June.”
Looking ahead, Jia warned that “[t]epid consumer confidence and industry consolidation may continue to weigh on gold jewellery demand,” but investment demand for bullion has the potential to remain strong in the second half of 2025.
