China’s Gold Demand Surges in October Despite Seasonal Trends, Says WGC
The Chinese gold ETFs witnessed notable inflows in October, adding $4.5 billion during the month.
SEATTLE (Scrap Monster): China’s gold sector posted unexpected strength in October, with wholesale demand rising sharply despite what is typically a slower seasonal period, according to the latest China Gold Market Report issued by the World Gold Council (WGC).
The report highlights that withdrawals from the Shanghai Gold Exchange (SGE) — a key indicator of wholesale gold demand — reached 124 tonnes in October. This represents an increase of 6 tonnes compared to September and a substantial 17-tonne rise year-on-year, defying usual post-holiday softness that traditionally appears after China’s peak festival and wedding season.
WGC attributes the boost to a renewed surge in investment interest, particularly in early October. Heightened geopolitical tensions between the U.S. and China, cooling sentiment in the local equities market, and a continued rally in global gold prices prompted investors to turn toward gold as a secure asset.
ETF Market Shows Robust Momentum
The country’s gold exchange-traded funds saw significant capital inflows during the month, marking one of the strongest periods of activity in 2025. Chinese gold ETFs absorbed $4.5 billion in new investments in October, the highest since April. Total ETF holdings climbed by 33 tonnes, reaching 227 tonnes, while total assets under management increased to $29 billion, according to WGC.
Outlook: Mixed Pressures and Growth Potential
Looking forward, the WGC notes that the recent adjustment to value-added tax (VAT) policies in China may soften near-term demand for physical gold jewellery. Even so, analysts believe there is remaining upside for gold bar and investment purchases, especially among Chinese consumers purchasing gold for jewellery fabrication or wealth preservation.
The WGC added that continued economic uncertainty and further market volatility could sustain investment appeal, even if retail jewellery purchasing slows.
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