Home / Business and Economy / India & China Gold Demand Dives Amidst Price Hikes
India & China Gold Demand Dives Amidst Price Hikes
20 Dec, 2025
Summary
- India's gold import fell sharply by 73% month-on-month in November.
- Chinese gold withdrawals from SGE fell 32% in November, weakest since 2009.
- Jewelry demand weakened in India and China despite investment inflows.
Gold demand in India and China experienced a downturn in November, with jewelry sectors showing particular weakness. India saw a substantial 73% decrease in gold imports compared to the previous month, and domestic price discounts widened to $30 per ounce. This decline followed a period of strong festive demand.
In China, withdrawals from the Shanghai Gold Exchange, a key indicator of wholesale demand, fell by 32% month-on-month. This marked the weakest November since 2009, largely attributed to a weakened gold jewelry market impacted by rising costs and VAT reforms.
Despite the slump in jewelry consumption, investments in gold exchange-traded funds (ETFs) continued across both countries. India's gold ETFs saw net inflows of $421 million, while Chinese gold ETFs attracted $2.2 billion in November, demonstrating a divergence between investment and retail jewelry demand.
