In January, gold ETF inflows into the Chinese market amounted to approximately RMB 827 million.

　　China News Service, Beijing, February 23 (Reporter Yan Xiaohong and Ruan Yulin) The World Gold Council disclosed on the 23rd that in January, the inflow of gold ETFs (exchange-traded funds) in the Chinese market was approximately 827 million yuan (113 million U.S. dollars), and its asset management Total size (AUM) hit a record high.

　　In January, the Shanghai Gold Exchange (SGE) gold outflow volume was 271 tons, a month-on-month surge of 65%.

Analysts said that active replenishment before the traditional gold consumption peak season around the Spring Festival holiday drove a substantial increase in upstream physical gold demand in January.

　　Analysts believe that the industry’s optimism about the demand for gold around the Spring Festival is mainly based on two points: First, the positive sentiment towards gold jewelry consumption. Gold jewelry products with the theme of “Year of the Dragon” often have auspicious meanings. Since the beginning of 2024, gold jewelry sales have been Provide strong support.

Second, gold investment demand is strong. The outstanding performance of RMB gold prices in recent months has attracted investors seeking safe-haven assets, thus prompting gold bars and gold coins to continue to be popular.

　　In January, the average price difference between gold prices within and outside China was US$47 per ounce.

The surge in domestic gold demand before the Spring Festival holiday, coupled with the reduction in gold imports in recent months, has led to a tighter supply and demand relationship, which in turn has raised the premium of gold prices at home and abroad.

　　In January, the inflow of gold ETFs in the Chinese market was approximately RMB 827 million (USD 113 million), and its total asset management scale (AUM) reached RMB 30 billion, a record high.

As of the end of January, China's total gold ETF holdings increased by 1.6 tons to 63 tons.

　　The World Gold Council predicts that domestic gold demand in China tends to be boosted during the Spring Festival.

After January, as the replenishment boom cools down, upstream physical gold demand may decline.

At the same time, continued demand for hedging and value may continue to push investors toward physical gold investments, further boosting gold demand at the beginning of the Year of the Dragon.

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