China’s Gold Market Kicks Off 2026 with Remarkable Strength
As the new year starts, China’s gold market grows strong. Ray Jia, who leads research for Asia Pacific and trade for China at the World Gold Council, notes this strength. Demand stays high in the nation that buys more gold than any other. Culture, investment ideas, and economic factors all push demand.
Record-Breaking Gold Prices in January
In January 2026, gold prices hit high marks in both global and Chinese markets. The London Bullion Market Association set a US dollar record unseen since 1980. The Shanghai gold price in Renminbi reached its strongest start. By the end of the month, small ups and downs kept prices near US$5,000 per ounce and RMB1,000 per gram. Prices climbed 14% in global markets and 19% in China. A small drop in early February did not stop a fast bounce back. This shows that buyers have a strong taste for gold.
Steady Wholesale Demand and Jewellery Market Activity
At the Shanghai Gold Exchange, wholesale moves reached 126 tonnes in January. This number barely passed last year’s amount and was 11 tonnes more than in the previous month. Bullion sales and maker restocking grew before the Spring Festival. Even with higher prices and sudden changes, wholesale moves stayed steady.
Investors Turning to Gold ETFs and Futures
Rising gold prices and global tensions made gold funds and futures more attractive. Chinese gold ETFs received RMB44 billion in new money during January. That start is the strongest on record. Funds in these ETFs reached RMB333 billion, a 38% increase from the previous month, with total holdings of 286 tonnes. Meanwhile, trading on the Shanghai Futures Exchange rose 17% from the previous month, with an average volume of 456 tonnes a day. Both speculative actions and a desire to cover risks led to more futures trading.
Central Bank Support Amid Global Risks
The People’s Bank of China added 1.2 tonnes of gold in January to reach a total of 2,308 tonnes. Gold now makes up nearly 9.6% of China’s foreign exchange reserves. This trend has continued for 15 months. Other global banks show similar moves. Gold stays a safe bet when the world seems uncertain.
Outlook: Cultural Drivers and Market Liquidity
The upcoming Chinese New Year, from mid- to late February, may push buyers to seek more gold jewellery and bullion. Customary gift-giving and self-rewarding ties help lift gold use in this season. Yet high prices slow jewellery sales a bit. Quick price changes lead many to trade in old jewellery for new pieces or bullion, which keeps cash flowing.
Summary
China’s gold market began 2026 with clear strength. Record prices, steady wholesale moves, and growing interest in ETFs and futures mark the year’s start. Central bank buys back gold as a safe bet in uncertain times. With festive days coming and market shifts in play, China will shape gold trends in the year ahead.
