Rising gold prices boost Chinese ETF inflows while cooling jewelry demand in March

According to the World Gold Council (WGC), gold prices both in China's domestic market and international one steadily climbed towards new record highs in the first quarter of 2025. The rally gained significant momentum in March. The Asian country's interest in the precious metal has been supported by unpredictable tariff initiatives of the US President, as well as regular gold purchases by China's central bank. A weaker dollar also contributed to the surge in gold prices. For the first three months of the year, the value of gold added about 19% both in yuan and in US dollars.

Last month, Kitco News experts also noted increasing inflows into gold-backed ETFs. However, the investors' enthusiasm has negatively impacted China's jewelry industry. The web portal also suggests a decline in imports. The heightened market activity in March, in turn, was most likely driven by the stock replenishment after the New Year's holiday season.

At the same time, China's gold consumption in the first quarter of this year was weaker than last year. Wholesale demand for the precious metal in the country amounted to 336 tons.