China Gold Demand Gains on Strong PBoC Buying: WGC

Gold  |  2026-09-15 13:08:22   |   By

China’s gold market showed a clear split in August as investment activity and central-bank buying strengthened while physical demand weakened. The PBoC added 20.2 tonnes, Chinese ETF holdings rose to 293 tonnes, and Shanghai Gold Exchange withdrawals fell to 62 tonnes.

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.

China Gold Investment Strengthens as PBoC Adds 20.2 Tonnes

China’s gold market showed a sharp divide in August, with stronger ETF activity, futures trading and central-bank buying offset by weaker physical demand as Shanghai Gold Exchange withdrawals fell to 62 tonnes.

By Paul Ploumis
Published September 15, 2026

Key Points

  • The LBMA Gold Price PM rose 13% in August, while the Shanghai benchmark advanced 8.4% in yuan terms.
  • Chinese gold ETFs added 11 tonnes, lifting total holdings to 293 tonnes and assets under management to RMB 282 billion.
  • Shanghai Futures Exchange average daily gold volume increased 36% month over month to 396 tonnes.
  • Shanghai Gold Exchange withdrawals fell 22% month over month and 27% year over year to 62 tonnes.
  • The People’s Bank of China added 20.2 tonnes of gold, extending its buying streak to 22 consecutive months and lifting official holdings to 2,387 tonnes.

MONTREAL (Scrap Monster): China’s gold market produced mixed signals in August, with investment activity and central-bank buying strengthening sharply while physical wholesale demand weakened, according to the latest World Gold Council report.

The LBMA Gold Price PM climbed 13% during the month, its strongest monthly performance since January. The Shanghai benchmark also advanced, rising 8.4% in yuan terms.

Gold ETFs and Futures Activity Strengthen

The price rally drew increased participation from Chinese investors across exchange-traded funds and futures markets.

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

Trading activity on the Shanghai Futures Exchange also accelerated. Average daily gold trading volume rose 36% month over month to 396 tonnes.

Net long positions held by the 20 largest market participants increased to 154 tonnes.

Physical Gold Demand Weakens

The physical market moved in the opposite direction.

Shanghai Gold Exchange withdrawals fell 22% from the previous month and 27% from a year earlier to 62 tonnes in August.

The decline pointed to softer physical bullion demand even as investment activity increased through ETFs and futures.

PBoC Extends Gold-Buying Streak to 22 Months

The People’s Bank of China added 20.2 tonnes of gold to its reserves in August.

The purchase was the central bank’s largest monthly addition since October 2023 and extended its gold-buying streak to 22 consecutive months.

China’s official gold holdings now stand at 2,387 tonnes.

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