China’s gold market displayed mixed signals in July 2025. The People’s Bank of China extended its buying streak, adding 2 tonnes of gold — the ninth consecutive month of central bank purchases — bringing China’s official reserves to 2,300 tonnes.
Despite the central bank’s accumulation, retail demand stayed muted. Withdrawals from the Shanghai Gold Exchange totaled 93 tonnes, well below the 10‑year average for the month. At the same time, Chinese gold exchange-traded funds experienced net outflows of 2.4 billion yuan (about $325 million) as some investors rotated into equities following stronger-than-expected economic data.
Gold imports for the first half of 2025 fell sharply, down 62% year-over-year to 323 tonnes. The decline reflects weak jewelry consumption at persistently high prices, even as investment interest — including central bank buying — continued to support demand from other sectors.
The contrast between official accumulation and soft retail activity highlights a bifurcated market: institutions and sovereign buyers remain active, while household and jewelry demand have been constrained by elevated prices and shifting asset allocation among private investors. This divergence has influenced trade flows, import volumes, and ETF positioning during the first half of the year.