China has discovered the largest gold deposit ever found in the country over the past seven decades, sitting on approximately 1,444 tonnes of gold. Lianing Geological and Mining Group’s 1,000 technicians and workers completed the find in just 15 days, and it comes as gold prices hit record highs.
China’s Ministry of Natural Resources confirmed the discovery of the Dadonggou gold deposit on November 14. Chinese officials claim the site has an estimated 2.586 million tonnes of ore with an average grade of 0.56 grams per tonne.
However, authorities have yet to disclose the precise location of the site, prompting public speculation about the secrecy surrounding it.
The ministry estimates that the discovered volume of gold could be worth over $166 billion, with gold trading at record highs of 115,000 per kilogram so far in 2025. It has described the find as ultra-large but low-grade, although it has already passed the preliminary economic feasibility assessment.
China accelerates mineral exploration in recent years
The Chinese government has reportedly accelerated its mineral exploration efforts in the past few years. The country’s officials reported in 2024 that gold worth roughly $83 billion had been discovered in Hunan Province. The Hunan Academy of Geology identified over 40 veins of gold ore stretching nearly 9,800 feet below the earth’s surface. The highest grade recorded was 138 grams per metric ton.
Another 40 tonnes of gold were discovered in Gansu in October, bringing the country’s total gold production to about 377.24 tonnes of gold in 2024. Government data showed it was a 0.56% increase from 2023.
China also confirmed that its domestic consumption reached 985.31 tonnes last year. Demand for gold coins and bars rose over 24% YoY. The Ministry of Natural Resources reported that China’s analysts attribute this trend to the growing interest among the expanding middle class. The Chinese middle class is reportedly using gold to safeguard their wealth amid global economic uncertainty, making gold a popular safe haven across China.
Gold prices surge over 50% YTD amid growing demand
Gold prices have surged nearly 60% so far this year, hitting a record $4,381.21 per ounce on October 20. Data compiled by Yahoo Finance shows that the popular hedging asset has lost 0.59% (-$24.70) over the last 24 hours, settling at $4,169.80 as of 5:09 GMT -5. However, prices rose for the fifth consecutive session on Thursday morning, reaching their highest level in over three weeks.
The data also shows that gold prices have been on a steady rise for the past five years. Gold prices have increased by 4.23% over the past five days, 0.72% in the past month, and by more than 31% in the past six months. The prices have also surged 59.96% TYD, 61.52% in the past year, and by over 121% in five years.
Gold futures also gained 0.4% to $231.50 per ounce, while spot gold went up 3% to $4,232.68. Jigar Trivedi, a senior research analyst at Reliance Securities, said gold is extending its winning streak driven by a weaker dollar. He also believes the expectations of a Fed cut and persistent central bank accumulation are driving the prices of gold upwards.
Trivedi emphasizes that there is a scope for highs above $4,300 per ounce by the end of 2025. The senior analyst said that gold prices will continue to rise as long as real yields stay subdued and monetary policy remains accommodative.
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