China's gold consumption reaches 684.62 metric tons in Jan-Sept

China's gold consumption edged up 0.28 percent year-on-year to 684.62 metric tons in the first three quarters of 2026, driven by robust investment demand for gold bars and coins as major Chinese mining groups simultaneously expanded overseas production to cushion a domestic supply contraction, the China Gold Association said on Wednesday.

Between January and September, consumption of gold bars and coins surged 26.26 percent year-on-year to 444.58 tons, while demand for gold jewelry fell 33.86 percent to 178.61 tons. Gold used for industrial and other purposes rose 1.41 percent year-on-year to 61.434 tons, according to the latest figures from the association.

The domestic gold consumer market exhibited pronounced structural divergence during the nine-month period under the dual influence of elevated gold prices and new gold tax policies.

In the investment segment, retail sales models underwent a structural reshuffle as direct sales steadily replaced traditional distribution channels. Meanwhile, the gold jewelry sector continued to upgrade its product mix toward higher value-added items, with fixed-price jewelry products gaining a larger share of total sales.

The decline in domestic raw material output was primarily attributed to upgraded safety supervision across the mining sector during the first three quarters, as mines nationwide rolled out comprehensive safety management enhancements and strengthened standardization.

Offsetting the domestic contraction, major Chinese gold mining groups steadily unleashed capacity at their overseas mines, producing 71.126 tons of gold abroad in the first three quarters, up 15.77 percent year-on-year.

During the first three quarters, gold prices rallied early before pulling back, though they remained at elevated levels with heightened short-term volatility and rising market risks.

Trading value across domestic exchanges grew steadily. Cumulative single-sided trading volume of all gold products on the Shanghai Gold Exchange rose 6.75 percent year-on-year to 25,400 tons (50,800 tons double-sided) in the first three quarters. In the domestic exchange-traded fund (ETF) market, gold ETF holdings grew by 56.11 tons during the nine-month period, down 28.98 percent year-on-year, bringing total holdings to 303.97 tons by the end of September.

Meanwhile, China added 103.26 tons of gold to its official reserves in the first three quarters. By the end of September, China's gold reserves stood at 2,409.59 tons, ranking fifth globally, after logging 23 consecutive months of reserve expansion from November 2024 to September 2026.

zhengxin@chinadaily.com.cn