China’s gold market rallied in April 2025, extending a run of monthly gains to five consecutive months.
Chinese gold exchange-traded funds enjoyed a record month, adding 65 tonnes of holdings—about US$6.8 billion in value. The Shanghai Benchmark Gold Price climbed 6.9% for the month, while the LBMA Gold Price rose roughly 6%.
Wholesale demand strengthened as withdrawals from the Shanghai Gold Exchange reached 153 tonnes, a 27% increase versus March. Meanwhile, the People’s Bank of China increased its official reserves by roughly 2.2 tonnes, bringing its reported total to about 2,295 tonnes.
Investment flows drove much of the April strength, even as official import figures for the first quarter remained subdued. Q1 imports were held back by lower import premiums and softer jewelry sales. That contrast suggests differentiated demand: robust investment interest pushed exchange and ETF activity higher, while physical consumer-led demand cooled.
Short-term dynamics could include periods of profit-taking that slow inflows or produce price consolidation after the recent rally. However, underlying longer-term factors—including appetite from domestic ETFs, central bank accumulation and continued interest from private investors—support a constructive outlook for gold in China over a multi-quarter horizon.
Market participants will likely monitor premiums, refining and logistics conditions, jewelry and bar demand, and any central bank purchase announcements for signs of whether recent momentum can be sustained. For now, April’s volumes and price gains underscore a significant shift toward investment-driven demand in China’s gold market.