China’s Gold Demand Surges in October Despite Seasonal Trends, Says WGC
Gold | 2025-11-19 11:17:31
The Chinese gold ETFs witnessed notable inflows in October, adding $4.5 billion during the month.
By Paul Ploumis
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.
YOU MAY ALSO BE INTERESTED IN:
WGC China Gold Market: Gold Prices Witnessed Limited Moves in June
POLL
Which factor is most likely to influence China’s gold demand in the coming months?
Frequently Asked Questions
- Why did China’s wholesale gold demand rise in October despite seasonal trends?
Demand increased due to heightened investment interest driven by U.S.–China geopolitical tensions, weaker performance in domestic equities, and strengthening global gold prices.
- How much gold was withdrawn from the Shanghai Gold Exchange (SGE) in October?
Withdrawals reached 124 tonnes, an increase of 6 tonnes from September and 17 tonnes compared to October last year.
- What happened with Chinese gold ETFs during the month?
Gold ETFs recorded $4.5 billion in inflows, the strongest since April, adding 33 tonnes and raising total holdings to 227 tonnes.
