Gold Demand
Gold investment demand in China to stay robust, says WGC's Ray Jia
This story was originally published at 21:10 IST on 17 March 2025
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MUMBAI – The investment demand for gold is expected to remain robust in China as investors anticipate further price gains and uncertainties around the US trade policy push up safe-haven buying, Ray Jia, World Gold Council Research Head (China), said in a report. Gold jewellery consumption in the country may start to stabilise if the local gold price remains steady and economic prospects continue to improve, Jia said.
China's gold exchange-traded funds witnessed the largest ever monthly inflows in February at $1.9 billion. Sizeable inflows and rising gold prices pushed Chinese gold ETFs' total assets under management to $12 billion, Jia said. Meanwhile, total assets under management holdings rose 21 tonnes on month to 131 tonnes, the highest on record.
"The strong local gold price performance in the month--especially the gapping up at opening on Feb. 5 when investors came back from the CNY (Chinese New Year) holiday--attracted attention. Meanwhile, concerns around the Trump administration's trade policy may have sparked some safe-haven flows," Jia said.
The People's Bank of China added another 5 tonnes of gold to its reserves in February, the fourth consecutive month of gold purchase. As of February-end, gold reserves with the Chinese central bank climbed to 2,290 tonnes, the highest on record, accounting for 5.9% of the total foreign exchange reserves, according to Ria.
"China's economic growth is showing signs of improvement. Official manufacturing and composite PMIs both exceeded the market consensus, expanding in February. And new loans during January surged to a record high, far outpacing expectations--also reflecting policy stimulus to shore up credit and bank loans front-loading patterns," Jia said. End
US$1 = INR 86.80
Reported by Ashutosh Pati
Edited by Akul Nishant Akhoury
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