China ETF Flows, Central Bank Buying Lift Gold: WGC

SEATTLE (Scrap Monster): Gold prices ended the first quarter of 2026 on a weaker note, as both the LBMA Gold Price PM and the Shanghai Gold Benchmark Price PM declined sharply in March, trimming overall quarterly gains, said World Gold Council (WGC). Prices fell amid reduced expectations of U.S. rate cuts and heightened geopolitical uncertainty linked to the Middle East conflict.

Despite the March dip, gold staged a recovery toward month-end, extending into April as investors returned to the market. Wholesale gold demand rebounded strongly, rising 57% month-on-month to 134 tonnes in March, pushing Q1 demand 3% higher year-on-year to 345 tonnes. Strong investment demand helped offset continued weakness in the jewellery segment.

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Chinese gold ETFs remained a standout, recording robust inflows of RMB59 billion (US$8.5 billion) during the quarter. Total assets under management surged 26% to RMB304 billion, while holdings increased significantly to 298 tonnes.

Meanwhile, the People’s Bank of China extended its gold buying streak to 17 consecutive months, adding 5 tonnes in March. Looking ahead, softer jewellery demand in Q2 may persist, although investment demand could remain supported by lower bond yields and limited alternative investment options.