This month, gold exchange-traded funds (ETFs) in China recorded net inflows of 70 tonnes, equivalent to approximately 7.4 billion dollars (6.5 billion euros), more than doubling the previous monthly record, according to the World Gold Council (WGC), an industry association.
China’s share in global gold ETF assets has risen to 6%, compared to 3% at the beginning of the year, with Chinese demand accounting for more than half of recent global inflows.
The price of gold has increased by 26% since the end of 2024, reaching historic highs above 3,500 dollars (3,077 euros) per troy ounce, before retreating to around 3,300 dollars (2,901 euros). In China, the local price exceeded the international value by 100 dollars (88 euros) per ounce, reflecting strong domestic demand.
This buying spree occurs amid tight control over capital outflows, limiting investment options. With the real estate market in crisis and the stock market accruing losses in recent years, gold has become an attractive alternative for many investors in the Asian country.
Chinese demand for gold ETFs surpassed global inflows in the first quarter of 2025, which totaled 226.5 tonnes—the highest quarterly volume in three years. In the first 11 days of April alone, Chinese ETFs absorbed 29.1 tonnes, surpassing the 23.5 tonnes of the entire first quarter, according to industry data.
The WGC has revised its gold investment forecast upward for this year, increasing it by approximately 160 tonnes from the previous estimate published at the end of 2024. Political and economic instability, including the 145% tariffs imposed by the United States on Chinese products, has strengthened gold’s appeal as a safe-haven asset.
This surge in demand led to a significant accumulation of reserves in New York in the first quarter, causing shortages in London as traders rushed to secure supplies in anticipation of new tariffs. However, the White House has since announced that the tariffs will not apply to gold.
