China’s gold exchange-traded fund (ETF) holdings and official reserves surged in the first three quarters of 2025, underscoring continued investor demand and state accumulation despite weaker physical consumption.
Data from the China Gold Association show domestic gold ETFs added 79 tons between January and September, a 164% increase from the same period in 2024, bringing total holdings to 193.7 tons by end-September.
Meanwhile, the People’s Bank of China extended its streak of monthly gold purchases to 11 consecutive months through September, adding 23.95 tons in the first three quarters to lift official reserves to 2,303.5 tons. The steady buildup reflects ongoing diversification away from U.S. dollar assets amid geopolitical uncertainty and persistent trade frictions.
China’s gold output also rose modestly, up 3.6% year-on-year to 392.9 tons, with production from domestic raw materials climbing 1.4% to 271.8 tons. However, gold consumption fell 7.9% to 682.7 tons, reflecting subdued jewelry demand and cautious household spending in a softer economy.
The combination of strong institutional inflows, central-bank buying, and moderate production growth suggests China remains a key driver of global gold market dynamics, even as retail demand lags.
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Rising Chinese ETF inflows and sustained central bank buying reinforce gold’s strategic appeal, helping underpin global prices near multi-month highs. The divergence between institutional accumulation and consumer demand highlights shifting drivers of the gold market.
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ps. The chart shows 5 minute candles updating sinc eht high a little earlier above US$4050.
