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Informist, Monday, Jun. 15, 2026

 

MUMBAI – China's gold jewellery sector is expected to exhibit stability as the industry replenishes its stocks following weak buying in previous months, the World Gold Council said in a report, authored by Ray Jia, head of research (Asia Pacific, ex-India) and deputy head of trade engagement (China) at the World Gold Council. Lower gold prices could support restocking activity, although further price declines may prompt jewellers to delay purchases. On the investment side, cooling gold price momentum could weigh on bullion demand as investors turn cautious, Jia said in a report.

 

Gold ended May with a modest decline. The London Bullion Market Association's gold prices were down 1.4% and the Shanghai Gold Benchmark Price fell 2.7%, as the yuan strengthened, exacerbating the weakness in Chinese gold prices. The fall in gold prices was due to uncertainties in West Asia and related inflationary concerns, which pushed yields and the dollar up, Jia said. 

 

Outflows in May ended an eight-month streak of inflows for Chinese gold exchange-traded funds, Jia said. Chinese gold ETFs saw their first monthly outflow since August 2025, shedding $1.2 billion in May. Combined with a lower gold price, total assets under management declined 5% to $43 billion. Chinese gold ETF holdings had dropped 8.3 tonnes to 293 tonnes by the end of May.

 

In May, gold futures trading volume on the Shanghai Futures Exchange stayed stable, averaging 301 tonnes per day. "This was little changed from April's 307t/day (307 tonnes per day) as trading activities were constrained by the consolidating local gold price and elevated investor interest in the local equity market," Jia said.

 

Wholesale gold demand fell notably in May, Jia said. Gold withdrawals from the Shanghai Gold Exchange totalled 64 tonnes, 38% lower on month. On a year-on-year basis, withdrawals declined 36%, making this the weakest May since 2010. The weakening gold price, along with attention-grabbing equities, dented safe-haven demand for gold investment products. "And persistent weakness in the gold jewellery sector amid affordability issues and additional tax burdens – despite mild upticks during May as the price stabilised – kept jewellers cautious in restocking. Taken together, May's wholesale demand took a hit, falling to a multi-year low," Jia said.  

 

The People's Bank of China announced its 19th consecutive monthly gold reserve increase in May, pushing official holdings 10 tonnes higher to 2,332 tonnes. This marks the strongest month of official sector gold purchases since December 2024. "Official gold holdings have risen by 25t y-t-d (25 tonnes year-to-date) and now account for 8.9% of China's foreign exchange reserves. The country's official sector has accumulated 67t of gold during the past 19 months," Jia said. 

 

Net gold imports into China totalled 157 tonnes in April, rising 10% on month and 40% on year and making this the strongest month since March 2024, Jia said, citing latest data from China Customs. The positive local gold price spread remained a key factor in encouraging imports, Jia said.  End

 

US$1 = INR 94.56

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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