By Amy Lv and Lewis Jackson
BEIJING (Reuters) -China’s gold consumption in the first half of 2025 declined at a slower pace, as strong safe-haven demand partly offset dwindling appetite for jewellery purchases amid persistently high prices of the precious metal.
Gold buying in the first six months slipped 3.54% year-on-year to 505.205 metric tons, versus a 5.96% annual fall in the first quarter and a 5.61% drop in the same period in 2024, data from the state-backed Gold Association showed on Thursday.
“The intensified geopolitical conflicts coupled with economic uncertainties have further highlighted gold’s safe-haven and value-preserving function, leading to a significant increase in private investment in gold bars and coins,” the association said.
Purchases of gold bars and coins, typically a gauge of safe-haven demand, jumped 23.7% year-on-year to 264.242 tons between January and June, or 52% of the total, overtaking jewellery as the largest segment.
In contrast, jewellery purchases slumped 26% to 199.826 tons as high prices dampened consumer interest.
Spot gold and the most-active contract on the Shanghai Futures Exchange climbed by about 25% in the period.
“Jewellery products with lightweight, strong design and high added value are still favoured,” the association said.
Separately, official data from the People’s Bank of China (PBOC) showed the central bank added gold to its reserves in June for the eighth straight month.
OUTPUT
China’s gold output from domestically produced raw materials fell 0.31% from a year earlier to 179.083 tons in the first half of 2025, while production from imported raw materials rose 2.29% year-on-year to 76.678 tons.
In all, China’s gold production rose 0.44% year-on-year to 252.761 tons.
(Reporting by Amy Lv, Xiuhao Chen and Lewis Jackson; Editing by Sumana Nandy and Himani Sarkar)
