Surging gold prices to keep investment demand firm in China, says WGC
This story was originally published at 12:49 IST on 20 October 2025
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MUMBAI – Even though the surge in gold prices may continue to weigh on gold jewellery consumption in China, it will spur investment demand for gold, particularly when the local equity momentum took a hit amid flaring tensions between China and the US, Ray Jia, research head, China at the World Gold Council, said in a report. After re-stocking in September, gold jewellery retailers will likely "dial back their replenishment in October" following seasonal trends, Jia said.
Wholesale demand for gold rose by 33 tonnes month-on-month in September, reaching 118 tonnes. Bar and coin sales improved during the month, supporting wholesale demand, Jia said. "September usually brings a seasonal uplift from manufacturers' new product launches and retailers' pre-Golden Week holiday restocking. Yet this year, soaring gold prices and doubts about future sales have tempered retailers' restocking enthusiasm," Jia added.
The Shanghai Benchmark Gold Price PM registered the strongest month on record in September and its second-strongest quarter ever with a 14% gain. Gold prices reached 36 new record highs during the first three quarters of 2025. Wholesale gold demand in China reached 297 tonnes in the first three quarters of the year, down 3% on year and 37% below the ten-year average, according to Jia.
Chinese gold exchange-traded funds finally saw inflows in September, after two straight months of losses. Chinese investors bought $622 million of local gold ETFs during the month, lifting the total assets under management to a $22 billion. However, September's inflows were not sufficient to reverse earlier losses, resulting in net outflows of $537 million in Jul-Sept.
The People's Bank of China continued to buy gold in September, adding 1.2 tonnes, its 11th consecutive month of buying the precious metal. China's official gold holding stood at 2,303 tonnes as of the end of September, accounting for 7.7% of the total foreign reserves, according to Jia. China imported net 87 tonnes of gold in August, down 2 tonnes from the previous month. End
US$1 = INR 87.78
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Ashutosh Pati
Edited by Deepshikha Bhardwaj
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