WGC: China Gold Prices Extend Gains on ETF Inflows, Central Bank Buying
Gold | 2025-12-15 05:11:29
Chinese gold exchange-traded funds recorded sizable inflows of RMB 16 billion, equivalent to roughly 17 tonnes.
By Paul Ploumis
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.
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Which factor contributed most to the decline in physical gold demand in China in November 2025?
Frequently Asked Questions
- How did gold prices perform in November 2025?
Gold prices continued their upward trajectory, with the LBMA Gold Price PM rising for six consecutive months and the Shanghai Benchmark Gold Price PM increasing for five consecutive months.
- What happened to physical demand for gold in China?
Physical demand weakened, with wholesale gold offtake falling 32% month-on-month to 84 tonnes, mainly due to softness in the jewellery segment and VAT reforms affecting the industry.
- What is the outlook for gold demand in China?
Investment-driven demand is expected to remain resilient, with bullion sales concentrated through Shanghai Gold Exchange, while jewellery demand may stay subdued due to ongoing VAT reforms.
