Shoppers look at gold products at a jewelry shop in Lianyungang, Jiangsu province. WANG CHUN/FOR CHINA DAILY
China's gold consumption saw a slight increase in the first half, reaching 511.41 metric tons, up 1.23 percent year-on-year, as strong investment demand offset sluggish jewelry sales, according to the latest industry data released by the China Gold Association.
Driven by sharp price fluctuations at historically high levels and the implementation of new domestic gold tax policies, the country's gold consumption structure continued to experience significant divergence, the association said.
Demand for gold jewelry plummeted 33.88 percent year-on-year to 132.13 tons, as consumers became hesitant to make purchases amid soaring retail prices. In stark contrast, robust investment demand pushed the consumption of gold bars and coins to 339.34 tons, surging 28.42 percent.
Periodic price pullbacks have consistently stimulated sales of gold bars through domestic banking channels, cementing them as a popular safe-haven asset for investors seeking to hedge against market risks, it said.
