World Gold Council: China gold ETF sees inflows for eight consecutive months, reaching a new all-time high in holdings

⑴ In April, the London midday gold price denominated in USD edged up by 0.1%, while the Shanghai midday benchmark gold price denominated in RMB fell slightly by 1.1%, mainly due to the strengthening of the RMB. Entering May, gold prices fluctuated around 1,000 RMB per gram, influenced by ongoing geopolitical uncertainties and repeated shifts in inflation expectations.⑵ In April, the China market saw an inflow of 3.5 billion RMB into gold ETFs, marking the eighth consecutive month of inflows. The total asset management scale rose to 306 billion RMB, total holdings increased by 3 tons to 301 tons, setting a new monthly holding record, mainly supported by continued global and regional geopolitical tensions.⑶ In April, the Shanghai Futures Exchange gold futures' average daily trading volume was 307 tons, a month-on-month decrease of 31% but still above the five-year average. The Shanghai Gold Exchange delivered a total of 103 tons of gold, a month-on-month drop of 23%, in line with expectations for gold jewelry consumption entering the traditional off-season in the second quarter.⑷ In April, the People's Bank of China increased its gold holdings by 8 tons, the largest single-month increase since December 2024, marking the 18th consecutive month of gold purchases. Official gold reserves rose to 2,322 tons, accounting for 9% of total official foreign exchange reserves.⑸ In the first quarter, China's net gold imports rebounded significantly, with a total volume of 316 tons, surging 182% quarter-on-quarter and 333% year-on-year. Looking ahead, gold jewelry consumption is expected to remain weak due to the traditional off-season, and demand for physical gold investment may continue to face pressure.