Chinese Households Increase Gold Buying Amid Economic Slump
Chinese investors are increasing gold purchases to hedge against a declining stock market and property slump, helping stabilize global bullion prices.
Chinese households have significantly increased gold purchases over the last two months, creating a support floor for bullion as prices test $4,000 an ounce. This surge in demand follows a period of domestic economic instability, characterized by a slumping property market and record-low government bond returns. The domestic stock market has lost $2.4 trillion in value since May, prompting investors to seek safe-haven assets.
Chinese investors are primarily utilizing low-barrier accumulation plans to buy bullion incrementally. This trend has accelerated rapidly, with purchases in the first nine months of 2026 already surpassing the total for the entire year of 2025. On the Shanghai Gold Exchange, volumes for the Au99.99 contract reached 43 million lots last week, marking the highest level since April.
This mainland demand has helped stabilize gold prices globally. The support from China comes at a time when bullion faces pressure from inflation concerns and expectations of interest rate hikes resulting from the US-Iran war.
