WGC: China Gold Prices Extend Gains on ETF Inflows, Central Bank Buying

Chinese gold exchange-traded funds recorded sizable inflows of RMB 16 billion, equivalent to roughly 17 tonnes.

SEATTLE (Scrap Monster): Gold prices continued their upward trajectory in November, reinforcing the metal’s appeal amid shifting demand dynamics in China.

The LBMA Gold Price PM in U.S. dollars recorded its sixth consecutive monthly increase, while the Shanghai Benchmark Gold Price PM rose for a fifth straight month, reflecting sustained strength across major pricing hubs.

Physical Demand Weakens

Despite rising prices, physical demand showed signs of softness:

  • Wholesale gold offtake fell sharply to 84 tonnes, down 32% month-on-month.

  • The decline was largely driven by weakness in the jewellery segment.

  • Recent value-added tax (VAT) reforms have accelerated consolidation in China’s gold jewellery industry.

Investment Demand Remains Robust

By contrast, investment demand remained strong:

  • Chinese gold ETFs recorded inflows of RMB 16 billion, equivalent to roughly 17 tonnes.

  • Bullion purchases through Shanghai Gold Exchange channels are increasingly favored as investors shift away from jewellery due to tax pressures.

Official Sector Buying Continues

The People’s Bank of China (PBOC) continued its gold accumulation:

  • Added 0.9 tonnes in November, marking its 13th consecutive monthly purchase.

  • Total official holdings now stand at 2,305 tonnes.

Outlook

  • Investment-driven demand is expected to remain resilient.

  • Bullion sales are likely to be concentrated through Shanghai Gold Exchange channels.

  • Jewellery demand may remain subdued due to ongoing VAT reforms.

YOU MAY ALSO BE INTERESTED IN:

WGC: World Central Bank Gold Demand Surges 36% in October

Global Gold Supply Reaches Record High in Q3 2025: WGC Report