China’s domestic gold production in 2024 reached 377.24 metric tons, marking a modest increase of 2.087 tons from 2023, or 0.56 percent growth, according to the latest data from the China Gold Association. Despite this, gold consumption in the country declined significantly, dropping 9.58 percent to 985.31 tons.
The decrease in consumption was largely driven by a 24.69 percent drop in gold jewelry demand, which fell to 532.02 tons. However, interest in gold bars and coins surged by 24.54 percent, reaching 373.13 tons. Industrial and other gold uses saw a slight decline of 4.12 percent, totaling 80.16 tons.
Analysts forecast a slower growth trajectory for China’s gold market in 2025, following a record-setting year in 2024 that saw gold become the best-performing asset in the country. While domestic factors such as strong investment momentum—reflected in significant inflows into gold exchange-traded funds (ETFs) and active futures trading—have supported gold’s performance, global macroeconomic factors are expected to exert more influence moving forward, according to the World Gold Council.
After reaching several record highs in 2024, gold is anticipated to experience a more modest pace of growth in the coming year, the council noted. Despite a sluggish gold jewelry market, Chinese gold and jewelry companies adapted by adjusting production strategies and promoting innovative products, with trends such as traditional and “Chinese style” gold jewelry gaining popularity.
In addition to domestic production, China’s gold conglomerates expanded their reach internationally. In 2024, these companies achieved a 19.14 percent year-on-year increase in gold output from overseas mines, totaling 71.937 tons.
China remains the world’s largest gold consumer, a position it has held for over a decade, and the top global producer for 15 consecutive years. The country’s gold market continues to play a critical role in shaping global trends, with its future performance closely tied to both domestic policy decisions and global economic developments.
The People’s Bank of China (PBOC) further bolstered the country’s gold holdings in 2024, adding 44.17 tons to its reserves. By year-end, the PBOC’s gold reserves had reached a historic high of 2,279.57 tons, making China the world’s sixth-largest holder of gold reserves.
As China’s gold market continues to evolve, it remains a vital indicator of broader economic sentiment, with its influence on global trends expected to endure in the coming year.
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