Insights

In this episode of Unearthed, co-hosts John Reade and Joe Cavatoni from the World Gold Council deep dive into the global performance of gold ETFs for Q1 2025.

Gold began 2025 with vigour: the LBMA Gold Price PM and the Shanghai Gold Benchmark Price PM both saw their strongest January in years, rising by 8% and 5% respectively. 

China’s wholesale gold demand sees a seasonal rebound in December yet the 2024 total remains weaker than 2023. Meanwhile, gold ETFs experienced unprecedented inflows in 2024. And China’s official gold holdings have increased two months in a row now, ending the year with reported gold purchases of 44t.

The local gold price’s unprecedent surge and amplified equity market volatilities helped Chinese gold ETFs attract their largest monthly inflow eve. China’s wholesale gold demand continued to exhibit seasonal patterns, witnessing a mild fall m/m yet remaining well below the long- term average. The stabilizing gold price, seasonality and positive impact from various stimulus may bode well for gold consumption in coming months.

In July, China’s wholesale gold demand remained weak and the local gold price premium trended down further. However, gold ETFs saw their eighth consecutive monthly inflows, pushing the total assets under management and holdings to record highs. And China’s official gold holdings remained unchanged.

In May, China’s wholesale gold demand fell as gold jewellery consumption and bar and coin sales cooled. Meanwhile, the local central bank didn’t report any gold purchase during the month. But the bright spot came from the gold ETF market which extended the inflow streak to six months.

The LBMA Gold Price AM in USD and the Shanghai Gold Benchmark PM (SHAUPM) in RMB bounced higher, both recording the strongest monthly gains since March. The local gold price premium fell from its record high, possibly driven by weaker gold demand during the month.

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Gold prices quoted in USD and RMB headed in different directions in August. Major factors including rising US Treasury yields and a strong dollar weighed on the international gold price in USD. But the Chinese currency weakness, which depreciated by 2% against the dollar in the month, led to a mild increase in the RMB gold price.

Despite June weakness, the LBMA Gold Price AM in USD and the Shanghai Gold Benchmark PM (SHAUPM) in RMB ended the first half of 2023 higher by 5% and 9% respectively – the depreciation of RMB against the dollar over the period contributed to the significant difference.

Your monthly update on gold in China covering gold prices, wholesale demand, central bank buying and more. 

The divergence between the RMB and USD gold prices widened. The weakening US dollar and lowering yields helped pushed the LBMA Gold Price AM in USD 7.4% higher in November, the best month since July 2020.

The domestic gold price diverged from the international gold price: the MCX Gold Spot price rose marginally by 0.2% compared to a 2% decline in the LBMA Gold Price AM in USD

Gold’s price divergence continued: the Shanghai Gold Price Benchmark PM (SHAUPM) in RMB rose by 1%, while the LBMA Gold Price AM in USD saw a 2% fall in October.

Due to fewer working days in the month and manufacturers’ active replenishing ahead of the Chinese New Year (CNY) holiday, gold withdrawals from the Shanghai Gold Exchange (SGE) in February fell m-o-m.