China gold market update: Q3 ends with strong official gold buying | Post by Ray Jia | Insights - World Gold Council

AI desk brief

China’s gold market showed a mixed but ultimately supportive Q3: the LBMA Gold Price PM fell 8.5% in September, but Chinese gold ETFs added 11t in the month and 27t in Q3, while the PBoC reported a 23t September purchase — its biggest monthly addition since Oct 2023 — taking Q3 buying to 63t and ytd accumulation to 103t. WGC also said Chinese ETF holdings hit a record 304t and early-October buying continued as investors used price pullbacks to add exposure.

On the physical side, SGE withdrawals rose to 92t in September on seasonal holiday restocking, but Q3 wholesale demand was still weak at 234t, down 21% y/y and 44% below the 10-year average, with jewellery consumption the main drag. WGC flagged geopolitics, energy, inflation expectations and the Fed path as the key near-term drivers, while noting Chinese bullion investment should remain supported by low opportunity costs and persistent equity-market weakness.