<p>The Chinese gold market got off to a strong start in 2026, with record prices and consistent demand.</p>
<p>China ranks as the world’s largest gold market.</p>
<p>Gold surged 14 percent in January, hitting all-time highs 11 along the way. Meanwhile, the yuan price increased even more, gaining 19 percent before the late-month correction drove the price significantly lower.</p>
<p>Before the pullback, it was the strongest start to a year on record.</p>
<div x-data=" item_id: undefined, view: null " x-html="view || 'Product-Random-New'" x-init="view = await (await fetch('/shortcodes/product/random/new?category=2')).text()">!!–Product-Random-New-2–!!</div>
<p><a href="https://www.moneymetals.com/news/2026/01/31/some-thoughts-on-the-gold-and-silver-sell-off-004652">The recent selloff</a> pushed prices down significantly, but they rebounded relatively quickly. In yuan terms, the price seems to have built support around ¥1,000 per gram.</p>
<p>According to the World Gold Council, the price dip has boosted already sizzling investment demand, as new consumers enter the market.</p>
<p>As is <a href="https://www.moneymetals.com/news/2026/02/22/indian-gold-demand-robust-in-india-in-january-as-prices-scaled-new-highs-004711">the case in India</a>, the skyrocketing gold price has driven investment demand to record levels even as jewelry demand faces price-related headwinds.</p>
<p>Chinese buying helped push <a href="https://www.moneymetals.com/news/2026/01/30/gold-demand-topped-5000-tonnes-for-the-first-time-in-2025-004647">gold bar and coin demand</a> to a 12-year high of 1,374.1 tonnes last year. In value terms, global bar and coin demand was a record-breaking $154 billion.</p>
<p>More than half of the global coin and bar demand came from two countries – China and India.</p>
<p>The World Gold Council described Chinese wholesale gold demand in January as “robust,” with withdrawals from the Shanghai Gold Exchange coming in at 126 tonnes. That was an 11-tonne month-on-month increase, and broadly in line with the January 2025 level.</p>
<p>According to the WGC, “<em>We believe strong bullion sales, supported by the gold price rally and jeweler restocking ahead of the Spring Festival holiday – particularly during month-end as they took advantage of the price dip – helped support demand</em>.”</p>
<p>According to the <em>South China Morning Post</em>, <a href="https://www.moneymetals.com/news/2026/02/16/chinese-consumers-gobbling-up-gold-in-run-up-to-lunar-new-year-004693">gold buying was robust leading up the Chinese New Year</a> holiday, continuing a year-long trend of robust demand.</p>
<blockquote>
<p>“From migrant workers splashing out on gold-coated jewelry, to white-collar workers pouring their savings into gold-linked investment funds, the metal is widely seen not only as a marker of social respectability, but also as a safety net amid an uncertain world.”</p>
</blockquote>
<p>Strong inflows into Chinese gold ETFs reflected relentless investment demand. Gold holdings increased by 38 tonnes in January, valued at ¥44 billion ($6.2 billion). That drove assets under management (AUM) by China-based funds to a record ¥333 billion ($36 billion).</p>
<p>A targeted interest rate cut, along with increasing expectations of further monetary easing, dropped local yields, creating tailwinds for gold investment.</p>
<p>The World Gold Council also noted that Chinese institutional investors are increasing their gold allocations. Until recently, their participation in the market had been “limited.”</p>
<p>ETF demand is so strong that the Chinese government recently mandated that banks tighten risk-management policies, requiring investors to pass more stringent risk assessments before purchasing gold-related financial products.</p>
<p>A gold ETF is backed by a trust company that holds metal owned and stored by the trust. In most cases, investing in an ETF does not entitle you to any amount of physical gold. You own a share of the ETF, not gold itself. ETFs are a convenient way for investors to play the gold market, but <a href="https://www.moneymetals.com/news/2024/03/08/paper-gold-vs-real-gold-its-important-to-know-the-difference-003038">owning ETF shares is not the same as holding physical gold</a>.</p>
<p>China was a major factor in last year’s gold bull market, but even so, gold imports into the country were modest at 675 tonnes in 2025. That represents a 41 percent year-on-year decline, and the lowest import total since 2020.</p>
<p><img src="https://www.moneymetals.com/uploads/content/china-gold-imports-2025.png" width="700" height="499" class="mx-auto p-3" alt="" /></p>
<p>Unlike India, China doesn’t depend exclusively on imports to feed its gold demand. The country ranks as the top gold producer, with Chinese mine output around 380 tonnes annually.</p>
<p>Looking ahead, the World Gold Council projects the Chinese gold market to remain active in the months ahead, even as the higher price caps jewelry demand. </p>
<p>One gold investor told the<span> </span><em>South China Morning Post</em><span> </span>that he expects gold investment to remain robust, even if the gold price rises more slowly, because it provides a sense of security.</p>
<blockquote>
<p>“Gold’s gains this year may not match last year’s, but it remains the safest bet.”</p>
</blockquote>
