China’s gold market posted a strong recovery in March 2025, with benchmark prices rising more than 8% and capping an unusually robust first quarter.
After wholesale demand dropped 36% year‑on‑year because of weak buying in January and February, withdrawals from the Shanghai Gold Exchange rebounded in March, signaling renewed physical demand.
Chinese gold exchange‑traded funds (ETFs) drew ¥5.6 billion of net new investment in March, lifting combined ETF holdings to about 138 tonnes and providing additional support to local prices.
The People’s Bank of China continued to add to its official gold reserves for the fifth consecutive month, reinforcing a longer‑term trend of gradual accumulation. At the same time, reported gold imports were subdued in the first two months of the year, reflecting softer wholesale flows and seasonal factors.
Market participants pointed to several drivers behind the March strength: a softer US dollar, easing global bond yields, and improved risk appetite that encouraged investors to diversify into bullion. Domestic demand dynamics also shifted as buyers returned to the physical market following a slow start to the year.
Looking ahead, analysts expect the balance between central bank buying, ETF flows, and physical offtake from consumers and jewelers to determine near‑term price direction in China. Policy moves, changes in import activity, and global macro trends will remain important influences on the market through the rest of 2025.