Jewelry demand took a sharp turn downward, falling 33.88% to 132.13 tonnes as retail buyers recoiled from record-high prices. Conversely, gold bars and coins became the primary engine of growth, with consumption jumping 28.42% to reach 339.34 tonnes. The China Gold Association noted that periodic price dips consistently triggered fresh buying through domestic banking channels, signaling a resilient appetite for physical assets despite the broader economic climate.

Domestic production faced headwinds, dropping 14.62% to 152.91 tonnes due to widespread environmental governance campaigns and safety inspections at major mines. While imported raw materials partially bridged the gap, total gold output fell 9.01% to 229.99 tonnes. Market analysts suggest Beijing is actively steering capital away from paper trading toward physical holdings. This strategy aligns with a long-standing government objective to encourage private ownership of bullion, a trend underscored by major lenders like ICBC recently restricting retail access to the Shanghai Gold Exchange.