WGC: China Gold Demand Driven by Accelerated PBoC Buying in August

Gold  |  2026-09-15 05:41:31   |   By

Chinese gold ETFs added 11 tonnes of holdings in August, lifting combined holdings to 293 tonnes. Total assets under management rose by RMB 10 billion to RMB 282 billion.

Summary
  • Gold prices and investment activity surged
    The LBMA Gold Price PM climbed 13% in August, marking its strongest monthly performance since January, while the Shanghai benchmark rose 8.4% in yuan terms. The rally encouraged greater participation in gold futures and ETFs, highlighting stronger investor interest.
  • Chinese gold ETFs and futures gained momentum
    Chinese gold ETFs added 11 tonnes of holdings during August, lifting combined holdings to 293 tonnes and assets under management to RMB 282 billion. Shanghai Futures Exchange average daily trading volume increased 36% month over month to 396 tonnes, while net long positions of major participants reached 154 tonnes.
  • Central-bank buying strengthened despite weaker physical demand
    The PBoC purchased 20.2 tonnes of gold in August, its largest monthly addition since October 2023 and the 22nd consecutive month of purchases. However, Shanghai Gold Exchange withdrawals fell 22% month over month and 27% year over year to 62 tonnes, pointing to softer physical bullion demand.

SEATTLE (Scrap Monster): China’s gold market recorded robust performance in August, supported by a sharp rise in gold prices, stronger investment activity and accelerated purchases by the People’s Bank of China (PBoC). However, the country witnessed uneven physical demand, particularly in the jewellery segment, said a latest report released by the World Gold Council (WGC).

The LBMA Gold Price PM climbed 13% in August, marking gold’s strongest monthly performance since January. The Shanghai benchmark price also advanced, rising 8.4% in yuan terms. The rally triggered increased participation in gold futures and exchange-traded funds (ETFs).

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Chinese gold ETFs added 11 tonnes of holdings in August, lifting combined holdings to 293 tonnes. Total assets under management rose by RMB 10 billion to RMB 282 billion.

The futures market also showed renewed strength. Average daily trading volume on the Shanghai Futures Exchange jumped 36% month over month to 396 tonnes, while net long positions held by the 20 largest market participants increased to 154 tonnes.

In contrast, physical bullion demand softened. Shanghai Gold Exchange withdrawals fell 22% month over month and 27% year over year to 62 tonnes in August.

Meanwhile, the PBoC added 20.2 tonnes to its reserves in August, the largest monthly increase since October 2023 and the 22nd consecutive month of purchases. Its official holdings now stand at 2,387 tonnes.