China’s Gold Market Sees a Strong Year-End Rebound Amid Shifting Demand Dynamics
As 2025 ended, China’s gold market grew strong in December. The market closed its best year in many decades. Ray Jia, a top researcher for Asia Pacific at the World Gold Council, told us that many factors shifted gold demand. Investment buyers and jewelry buyers now follow different paths.
Record-Setting Gold Price Performances in RMB and USD
In December, gold prices climbed around the world. Geopolitical strains, active options trading, and more funds into ETFs helped push prices up. The Shanghai gold price in Renminbi rose by 2.8%. The gold price in US dollars on the LBMA scale went up by 4.2%. For the full year, the RMB price jumped 58% since the Shanghai Gold Exchange started in 2002. The USD price rose 67%, its best year since 1979. The rise in the RMB against the dollar meant that local gains on gold were a bit lower.
Wholesale Demand Rebounds Seasonally but Faces Yearly Decline
In December, wholesale shipments from the Shanghai Gold Exchange reached 115 tonnes. This figure shows a 36% lift from the previous month. The boost came as retailers prepared for the end-of-year sales rush. Over all of 2025, total gold withdrawals reached 1,298 tonnes. This amount is 11% lower than in 2024 and 28% lower than the ten-year average. A new value-added tax on gold jewelry and high gold prices weakened consumer demand in this area. Buyers and sellers adjust to the tax change, but jewelry demand has not yet regained its old level amid the shock felt in November.
Gold Investments Surge, Supported by ETF and Futures Market Growth
Investment demand for gold pushed upward during 2025. Chinese gold ETFs saw flows for four straight months into December. In that month alone, RMB 3.9 billion (about US$545 million) entered the market, which equals roughly 3.8 tonnes of gold. Over the year, investors purchased RMB 112 billion (US$15.5 billion) in gold ETF shares. This record inflow came as local prices jumped and global tensions increased. The total assets under management for Chinese gold ETFs jumped by 243% to reach RMB 242 billion (US$34.6 billion). Gold held by investors reached 248 tonnes, more than twice the previous year’s numbers.
Gold futures on the Shanghai Futures Exchange also saw strong action. In December, the average daily trading reached 390 tonnes. Although this was a small drop from November’s levels, it still remained well above the five-year average of 216 tonnes per day. For all of 2025, daily gold futures volume averaged 457 tonnes, a 52% rise from the previous year. Price changes and a need to hedge risks kept the market busy throughout the year.
China’s Central Bank Continues to Bolster Official Gold Reserves
The People’s Bank of China bought more gold month after month through 2025. It recorded 14 straight months of net gold purchases. In December, the bank added 0.9 tonnes. Over the year, the bank added 27 tonnes. At the end of 2025, official gold holdings reached 2,306 tonnes. These reserves made up 8.5% of China’s overall foreign exchange reserves. Public news of these buys seems to have boosted market confidence and spurred retail interest in bullion and ETFs.
Import Patterns Reflect Demand Pressures and Policy Impact
After falling earlier in the year, net gold imports rose to 47 tonnes in November 2025. This climb was 12 tonnes more than in October. However, imports fell by 60 tonnes compared to last year. The new tax on gold jewelry and a local price discount in a weak buying period reduced the incentive for importers to buy gold.
Outlook: A Changing Landscape Between Consumer and Investor Appetite
The events of 2025 show that China’s gold market is changing. Investment buyers grew stronger while jewelry purchases slowed down. Price trends, tax changes, global strains, and central bank actions shape this market today. The World Gold Council will release a Gold Demand Trends report later this month that adds more details for the coming year.
China now faces its own mix of factors that affect gold buying and holding. Market players around the world watch these changes. Gold stays a preferred asset for both its value and cultural ties. The balance between jewelry buyers and investment buyers will shape the market in the months ahead.
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This article was generated by Hivebox AI
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