China's gold production from domestic sources totaled 152.908 metric tons in the first half of 2026, a decrease of 14.62% compared to the same period last year, according to the latest data from the China Gold Association. Meanwhile, gold consumption reached 511.412 metric tons, marking a 1.23% year-on-year increase.
Domestic raw material gold output dropped by 26.175 metric tons to 152.908 tons in the first six months of 2026, a decline of 14.62%. Imported raw material gold production rose by 3.402 metric tons to 77.080 tons, a 4.62% increase. Combined production from domestic and imported sources totaled 229.988 tons, a decrease of 22.773 tons, or 9.01%, compared to the previous year. Industry authorities conducted safety inspections and special rectification campaigns in key gold-producing provinces, leading some mines to suspend operations for self-inspection, which had a temporary impact on output.
Key areas for investment demand
Overseas mine projects operated by large Chinese gold mining groups remained stable overall, with capacity releases proceeding smoothly in the first half of 2026. Zijin Mining Group saw sustained output increases from its Akyem Gold Mine in Ghana and the Rygold Gold Mine in Kazakhstan. Overseas production from China Gold Group, Shandong Gold Group, and Shandong Zhaojin Group also maintained steady growth. These overseas mines produced 48.098 metric tons of gold in the first half of the year, a 21.43% increase year-on-year.
China's total gold consumption amounted to 511.412 metric tons in the first half of 2026, up 1.23% from the same period in 2025. Within this total, gold jewelry consumption fell sharply by 33.88% to 132.133 metric tons, while demand for gold bars and coins surged 28.42% to 339.336 metric tons. Industrial and other uses of gold declined by 2.90% to 39.943 metric tons. The combination of high and volatile gold prices, along with the implementation of new tax policies on gold, has driven a structural divergence in consumption. Investment demand for gold strengthened, with gold bars and coins becoming popular investment instruments. A temporary pullback in gold prices boosted sales of gold bars through bank channels. High gold prices also increased costs for industrial users, leading to a reduction in industrial gold consumption.
In the first half of 2026, the cumulative trading volume of all gold products on the Shanghai Gold Exchange (SGE) was 1.61 million metric tons on a single-count basis (3.21 million metric tons double-counted), a decrease of 4.37% year-on-year. The total transaction value reached 16.57 trillion yuan on a single-count basis (33.14 trillion yuan double-counted), an increase of 36.75%. On the Shanghai Futures Exchange (SHFE), the cumulative trading volume of all gold futures and options was 5.85 million metric tons on a single-count basis (11.71 million metric tons double-counted), down 22.46% year-on-year, while the total transaction value was 46.57 trillion yuan on a single-count basis (93.15 trillion yuan double-counted), up 4.80%.
As of the end of June 2026, the London PM Gold Fix was set at $4,026.05 per ounce, a decline of 8.22% from the start of the year. The closing price for Au99.99 on the Shanghai Gold Exchange was 879.03 yuan per gram, down 11.21% from the opening price of 990.00 yuan per gram at the beginning of the year. Although prices have fallen, they remain at elevated levels, with short-term volatility increasing and market risks rising.
Domestic gold ETF holdings increased by 28.677 metric tons in the first half of 2026, a decrease of 66.17% compared to the same period in 2025. By the end of June 2026, total holdings in domestic gold ETFs stood at 276.529 metric tons. China added 40.12 metric tons to its gold reserves in the first half of 2026, bringing its total reserves to 2,346.45 metric tons by the end of June, ranking fifth globally. The country has now increased its gold reserves for 20 consecutive months, since November 2024.
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