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Informist, Friday, Feb. 13, 2026

 

MUMBAI – Gold jewellery demand and bullion investment in China is poised to strengthen ahead of the coming Chinese New Year holidays from Feb. 15 to Feb. 23, underpinned by self-rewarding and gifting-related purchases, even as elevated prices may limit jewellery volumes, Ray Jia, research head (China) at the World Gold Council, said in a report. Heightened price volatility has also fuelled greater interest in bullion buying and gold recycling, with more consumers exchanging old jewellery for new. "We expect this to continue, contributing to higher liquidity in China's gold market," Jia said. 

 

Gold saw one of its strongest January in decades, and hit 11 all-time highs during the month, breaching decisively through key thresholds, Jia said. London Bullion Market Association gold prices climbed 14% during the month, while the Shanghai gold benchmark rose 19%. "However, following a rapid ascent for most of January, gold pulled back by the end of the month – likely impacted by a positive market reception of the Trump-nominated Fed Chair candidate Kevin Warsh, followed by momentum-driven sales, and to some extent, selloff in other commodities such as silver," Jia said. 

 

In early February, gold briefly slipped below $4,500 per ounce, before rebounding above $5,000 per ounce. "Consumers and investors have likely taken advantage of the lower price levels to enter the market, especially since the more fundamental factors driving demand for the past year, remains in place," Jia said.

 

Banks, jewellery manufacturers and refiners' withdrawals from the Shanghai Gold Exchange totalled 126 tonnes in January, broadly in line with a year earlier and 11 tonnes higher on month, supported by strong bullion sales and jeweller restocking ahead of the spring festival holidays, especially during the month-end as they took advantage of the price dip-helped demand, Jia said. Still, sharp price rise and rising volatility made some buyers cautious about holding high-cost inventory, limiting wholesale demand and leading to a 10% on-year fall in withdrawals per trading day. 

 

Chinese gold exchange traded funds added $6.2 billion in January, the second-strongest month ever, Jia said. The fifth consecutive monthly inflow and higher gold prices pushed total assets under management to $36 billion, 38% higher on month, and an all-time high. Holdings surged to 286 tonnes from 38 tonnes, setting another record. A rally in gold prices drew strong investor interest.

 

Declining local yields amid a targeted rate cut and expectations of monetary easing, as well as elevated geopolitical tension, further boosted gold exchange-traded funds appeal. "In addition, we have noted a growing allocation by local institutional investors whose participation in the market had previously been limited; we view this growth as likely driven by the above-mentioned factors," Jia said. 

 

The People's Bank of China continued to report gold purchases, pushing holdings 1.2 tonnes higher to 2,308 tonnes, with gold making up 9.6% of the total reserve assets. It was the 15th consecutive monthly gold reserve increase, Jia said. China imported 29 tonnes of gold on a net basis during December 2025, down 18 tonnes on month and 55 tonnes on year. Weak gold jewellery demand and local gold price discounts during most of the month discouraged importers. In 2025, net imports reached 675 tonnes, down 41% on year, Jia said.  End

 

US$1 = INR 90.74

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Reshma Ravi

Edited by Avishek Dutta

 

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