The gold usage in China could dictate the prices of the XAU/USD index next, with its shifting consumer consumption. Retail jewelry consumption in China has dipped 3.54% in the first half of 2025, but the void has been filled with the accumulation of gold bars and coins.
According to the latest consumption report from the China Gold Association (CGA), consumption of bars and coins in China has surged 23.69% in 2025. That takes the consumption numbers to 264.24 tonnes of the precious metal during H1. Apart from retail investors, even gold usage for industrial purposes rose 2.59% in the same timeframe.
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Gold Coins & Bars Sales Rise 24%
Jewelry demand has weakened due to the surging prices, making it expensive for retail buyers. However, the same retail buyers have decided to invest in it instead to gain profits from further price surges. Gold coins and bars are good investments that can generate profits in the long run. Even if it doesn’t, they still have the precious metal in the lockers, which is a hedge against inflation.
“Jewelry demand has weakened amid the surging gold price, cautious consumer spending, and the industry’s continued consolidation,” said CGA’s Research Head Ray Jia. He explained that retail investors did not sit on the sidelines but used it to buy bars and coins.
“But (the jewelry) sector’s weakness was partially offset by investment strength. The gold price rally, rising safe-haven demand amid spiking US-China trade tensions, particularly in April. Tepid performances of other domestic assets supported bar and coin sales,” he said.
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Retail investors are now taking a leaf from institutional clients by investing in the glittery metal, not for consumption. Gold coins and bars will have the same value even after 10 years, with their price hitting new highs. The consumers have changed their ways and could soon reach the shores of other Asian countries.
