WGC China Gold Market Update Spotlights Investment Boom in March

SEATTLE (Scrap Monster): The China Gold Market Update published by the World Gold Council (WGC) noted that March of this year was another exceptional month for gold. The investment boom continued during the month.

WGC reports that the gold price increase persisted in March. For the first time in a year, the SHAUPM in RMB had its best month. With a 9.9% increase, the LBMA Gold Price PM reached its highest level since July 2020. Trump's erratic trade policies and growing global tensions increased the allure of gold as a safe-haven asset. Higher gold ETF investments and a declining dollar additionally contributed to the price spike.

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In the first quarter of this year, China's wholesale gold demand was 336 tons, a substantial decrease of 36% from the same quarter last year. It was also 29% below the ten-year average. In March 2025, 120 tons of gold were taken out of the SGE, which is a little less than the same month the previous year. However, the WGC study stated that when compared to the previous month, withdrawals increased as a result of jewelers and bankers replenishing.

Regarding the forecast for gold, WGC stated that the yellow metal's investment demand is anticipated to remain robust in the near future. Additional support will be provided by the strength of the gold price globally, which is mostly driven by market volatility.