China gold consumption and central bank reserves rise

Gold consumption in China rose by 1.23 percent in the first half of 2026, reaching 511.41 tonnes. This growth was driven by a surge in investment demand for gold coins and bars, which increased by 28.42 percent, offsetting a 33.88 percent decline in the jewelry market caused by high retail prices.

Simultaneously, the People's Bank of China (PBOC) has continued a long-term trend of increasing its official gold reserves, adding 640,000 troy ounces in July. This marks 21 consecutive months of official increases. Reports suggest that China's actual gold holdings may be significantly higher than publicly disclosed, with some estimates placing monetary gold in Beijing at over 5,000 tonnes.

As part of a broader repatriation strategy, the PBOC has begun moving gold reserves from London to Hong Kong. Domestic gold production in China also saw a 14.62 percent decrease, falling to 152.91 tonnes, due to government-imposed environmental and safety inspections in mining regions.