China's gold production increased slightly in 2025, while total consumption decreased, reflecting a clear shift from jewelry gold to investment products, according to data released by the China Gold Association on February 5, 2026, according to Xinhua News Agency.
Last year, China produced 381,339 tons of gold, an increase of 1.09% compared to the same period last year. Gold production from imported raw materials also increased sharply by 8.81%, reaching 170.681 tons.
The Association said that in 2025, a series of exploration, exploitation and technology application projects in the gold sector have achieved breakthroughs in each stage.
In terms of consumption, China's total gold consumption in the past year reached 950,096 tons, down 3.57% compared to the previous year. The main reason came from a sharp decrease in demand for jewelry gold, while the purchase volume of gold bars and gold coins skyrocketed. This is the first time that gold consumption for investment purposes in the year has surpassed jewelry gold in China.
Gold trading activities in the domestic market are also vibrant, with total trading volume increasing sharply on both the Shanghai Gold Exchange and the Shanghai Futures Exchange. This development shows that market participation is increasing in the context of gold prices maintaining at a high level, reflecting safe-haven sentiment.
High gold prices also boosted capital flows into gold exchange-traded funds (ETFs). In the past year, gold ETFs increased by 133,118 tons, an increase of 149.91% compared to 2024, bringing the total amount of gold held by these funds to 247,852 tons by the end of December 2025, according to published data.
Compared to China, India's gold consumption market in 2025 shows similarities but also notable differences in the level and structure of demand.
India consumed about 710 tons of gold, a deeper decrease, about 11% compared to 2024. Jewelry gold demand decreased by 24%, but investment gold increased by about 17%, showing a similar shift to China but with a stronger decrease in total demand. In general, both largest markets in Asia witnessed the investment role of gold increasingly overwhelming traditional consumption functions in 2025.
