Q1 year-over-year down 37.1%; gold jewelry sales are sluggish.

Are gold bars and gold coins hot sellers—while jewelry no longer looks attractive?

On May 9, according to the latest release from the China Gold Association, domestic gold jewelry consumption continued to face pressure in the first quarter due to international gold prices running at high levels and experiencing significant fluctuations. At the same time, consumption volume of gold jewelry kept declining. Meanwhile, demand for gold investment remained strong, with gold bars and gold coins becoming popular investment categories in the market, and bank sales channels saw a significant increase in gold bar sales.

Specifically, in the first quarter of 2026, China’s gold consumption volume was 303.292 tons, up 4.41% year over year. Of this, gold jewelry was 84.62 tons, down 37.1% year over year; gold bars and gold coins totaled 202.062 tons, up 46.4% year over year; industrial and other gold uses were 16.61 tons, down 7.43% year over year.

Regarding international gold prices, Wind data shows that in the first quarter of 2026, spot gold prices traded in a volatile range. The highest level once nearly approached 5600 US dollars per ounce, while the lowest fell to 4098 US dollars per ounce. The amplitude of the range was as high as 34.75%, and the market still accumulated a gain of about 8%.

For domestic gold jewelry, the latest per-gram quotations from multiple brands are approximately 1432 yuan—1438 yuan. Among them, Chow Tai Seng and Lao Feng Xiang are 1438 yuan per gram, while Zhouda Fook reports 1432 yuan per gram.

Where will gold go next? Will it still be worth investing in?

Global total gold demand surges

Global central banks increased their gold holdings by 244 tons in Q1

According to data from the World Gold Council’s 2026 Q1 “Global Gold Demand Trends Report,” global total gold demand (including over-the-counter trading) in the first quarter was 1231 tons, up 2% year over year. Measured by value, the total amount of gold demand was 19.3 billion US dollars, up significantly by 74% year over year.

Looking at the breakdown of gold demand, in the first quarter, global gold investment demand was 536 tons, down slightly by 5% year over year, mainly because gold jewelry demand dragged on it. Among them, total global demand for gold bars and gold coins was 474 tons, and net inflows into global gold ETFs were 62 tons. Total global gold jewelry consumption was 300 tons: while gold consumption volume declined, the total spending amount rose significantly. Net purchases by global central banks were 244 tons, with the purchase volume higher than the five-year average. Although some central banks in certain countries, such as Turkey, reduced their holdings for different reasons, globally, central banks still increased their gold holdings by 244 tons in the first quarter overall. Finally, gold demand for the technology sector in the first quarter was 82 tons, with little change.

In addition, stablecoin companies are gradually becoming an important marginal buyer of gold. According to Tehter’s (Tether’s) quarterly report, in the first quarter Tehter bought about 6 tons of gold. As of the end of March this year, the total amount of gold held by Tehter was about 132 tons. “Tether” is a dollar-pegged stablecoin. On the one hand, to maintain the principle of 1USDT=1 USD equivalence, increasing gold holdings can help keep the Tether unit value stable. Gold, as a globally recognized reserve asset, can be used to back crypto assets. On the other hand, Tether also invests in US Treasury bonds and dollars, etc. Gold is an asset with no credit risk and very good liquidity, so it is undoubtedly a better option for stablecoin companies to increase holdings. Moreover, stablecoin companies also choose to increase their gold holdings to meet the needs of diversified investment portfolios. In the future, as global stablecoin issuance increases, corresponding gold demand will also keep rising. In the future, private digital currencies may become an important competitor to central bank gold reserves.

(Source: 21st Century Economic Herald)