China gold investment demand may improve if prices rise further, says WGC
This story was originally published at 21:17 IST on 17 August 2026
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MUMBAI – Investment demand for gold in China is likely to improve if prices continue to rise. However, the local equity market rebounded in early August and this could divert attention there if the strong momentum persists, Ray Jia, head of research, Asia-Pacific excluding China, and deputy head of trade engagement (China) at the World Gold Council, said in a report. Wholesale demand for gold could receive seasonal support from a rise in jewellers' inventory replenishment hereon, Jia said.
Wholesale gold demand remained weak, with withdrawals from the Shanghai Gold Exchange falling 8% on month to 80 tonnes in July. The decline was largely seasonal and reflected continued weakness in jewellery demand, according to the WGC.
China's central bank made its largest monthly gold purchase in about three years in July, likely taking advantage of lower gold price and underscoring the precious metal's strategic role in reserve diversification amid the war in West Asia, the council said. The People's Bank of China bought 20 tonnes of gold in July, its largest monthly purchase since October 2023, extending its buying streak to 21 consecutive months, according to WGC. The July purchase followed a 15-tonne addition in June and took the country's official gold-buying streak to a record. The country's net gold imports stood at 152 tonnes in June, the highest since March 2024. Imports totalled 764 tonnes in the first half of 2026, up 138% from a year ago.
Chinese gold exchange-traded fund holdings increased by 5 tonnes to 282 tonnes in July, with inflows of 5 billion yuan or $744 million, the council said. Gold ETFs have added about eight tonnes so far in August, with inflows recorded on almost every trading day through Aug. 11, supported by strong gold price momentum. End
Reported by Somen Bose
Edited by Rajeev Pai
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