Decline in China gold consumption slows as safe-haven demand strengthens
China's gold consumption in the first three quarters of 2025 declined at a slower pace than the preceding year, as strong safe-haven interest continued to support investment demand despite high prices weighing on jewellery buying.
Total gold consumption was 682.73 metric tons in January to September, down 7.95 percent year on year. The decline was slower than a 11.18 percent yearly decline in the corresponding period in 2024, but was an acceleration compared with 3.54 percent in the first half of 2025, data from the state-backed Gold Association showed on Monday.
The release came later than expected this year as the association historically publishes the data in late October.
Purchase of gold bars and coins, a gauge of safe-haven interest, jumped 24.55 percent to 352.12 tons, or 51.58 percent of total consumption, remaining the largest segment.
Intensification of geopolitical conflicts and economic uncertainties remained to highlight gold's safe-haven and value-preserving function and contribute to the increase in gold bars and coins consumption, the association said.
Consumption of gold jewellery, on the other hand, continued to tumble, down by 32.50 percent year on year to 270.04 tons, as high prices dampened interest.
Spot gold surged over 45 percent in the nine months since January, and the most active gold contract on the Shanghai Futures Exchange climbed nearly 40 percent.
Beijing on November 1 cut a value added tax exemption for certain gold purchased through the Shanghai Gold Exchange and the Shanghai Futures Exchange, a move expected to push up costs for gold consumption in jewellery and industrial uses.
Separately, the People's Bank of China extended its gold buying spree to a twelfth straight month in October.
On the production front, gold output using domestic raw materials climbed 1.39 percent year-on-year to 271.78 tons, and production from imported raw materials rose 8.94 percent to 121.15 tons.
Total output was up 3.60 percent to 392.93 tons.
Source: https://www.thestandard.com.hk