China’s gold production saw a consistent increase in the first quarter of 2025, as revealed by data from the China Gold Association (CGA) released on Monday. The country produced 87.24 metric tons of gold between January and March, reflecting a solid 1.49% year-on-year growth from the same period in 2024.
This steady increase in production comes amidst a complex landscape for gold consumption within China. Despite the rise in output, overall gold consumption experienced a decline during the first quarter. Total gold consumption dropped to 290.49 metric tons, marking a 5.96% decrease compared to the first quarter of the previous year. The reduction in demand, particularly in the jewelry sector, signals a shift in the country’s gold market dynamics.
Gold jewelry consumption, a major component of overall gold demand, fell sharply by 26.85% to 134.53 metric tons during the three-month period. This substantial decline is attributed to a combination of factors, including high gold prices, which have likely deterred many consumers from purchasing gold items. This drop is particularly significant in the context of China’s long-standing position as one of the world’s largest consumers of gold jewelry.
Similarly, the demand for gold bars and coins, traditionally seen as safe-haven investments, also experienced a notable decrease, falling by 29.81% year-on-year to 138.02 metric tons. The decrease in investment demand for physical gold could be linked to various factors, including changing investment preferences and economic conditions that have influenced Chinese investors.
Additionally, the consumption of gold for industrial and other uses showed a smaller but still significant decline. Industrial demand for gold, which is used in various applications such as electronics and manufacturing, fell by 3.84% to 17.94 metric tons compared to the same period in 2024.
While China’s gold production remains steady, the drop in consumption highlights the challenges facing the country’s gold market in 2025. The continued volatility in global economic conditions, fluctuations in gold prices, and shifts in consumer and investment behaviors are likely factors contributing to the reduced demand for gold. Despite this, China’s status as a key global gold producer remains unchanged, and future trends in production and consumption will continue to be closely monitored by industry experts.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
