WGC: China Gold Demand Driven by Accelerated PBoC Buying in August
Gold | 2026-09-15 05:37:30
Chinese gold ETFs added 11 tonnes of holdings in August, lifting combined holdings to 293 tonnes. Total assets under management rose by RMB 10 billion to RMB 282 billion.
By Paul Ploumis
SEATTLE (Scrap Monster): China’s gold market recorded robust performance in August, supported by a sharp rise in gold prices, stronger investment activity and accelerated purchases by the People’s Bank of China (PBoC). However, the country witnessed uneven physical demand, particularly in the jewellery segment, said a latest report released by the World Gold Council (WGC).
The LBMA Gold Price PM climbed 13% in August, marking gold’s strongest monthly performance since January. The Shanghai benchmark price also advanced, rising 8.4% in yuan terms. The rally triggered increased participation in gold futures and exchange-traded funds (ETFs).
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Chinese gold ETFs added 11 tonnes of holdings in August, lifting combined holdings to 293 tonnes. Total assets under management rose by RMB 10 billion to RMB 282 billion.
The futures market also showed renewed strength. Average daily trading volume on the Shanghai Futures Exchange jumped 36% month over month to 396 tonnes, while net long positions held by the 20 largest market participants increased to 154 tonnes.
In contrast, physical bullion demand softened. Shanghai Gold Exchange withdrawals fell 22% month over month and 27% year over year to 62 tonnes in August.
Meanwhile, the PBoC added 20.2 tonnes to its reserves in August, the largest monthly increase since October 2023 and the 22nd consecutive month of purchases. Its official holdings now stand at 2,387 tonnes.
POLL
What was the strongest driver of China’s gold market performance in August?
Frequently Asked Questions
- How did China’s gold market perform in August?
China’s gold market showed strong investment-driven performance, supported by a sharp increase in gold prices, higher ETF holdings and stronger futures activity. However, physical bullion demand weakened, particularly as Shanghai Gold Exchange withdrawals declined significantly.
- How much did Chinese gold ETF holdings increase in August?
Chinese gold ETFs added 11 tonnes during August, taking their combined holdings to 293 tonnes. Their total assets under management also increased by RMB 10 billion to RMB 282 billion, reflecting stronger investor participation during the gold price rally.
- What was the significance of the PBoC’s August gold purchases?
The People’s Bank of China added 20.2 tonnes of gold to its reserves in August. It was the central bank’s largest monthly purchase since October 2023 and extended its buying streak to 22 consecutive months, taking official gold holdings to 2,387 tonnes.