WGC: Chinese gold market shows record performance in first half of 2025

Ray Jia, analyst at the World Gold Council (WGC), notes that the Chinese gold market set new records in the first half of the year. Shanghai gold prices and inflows into precious metal-backed ETFs reached their highest levels, indicating market stability.

According to the WGC, gold withdrawals from Shanghai Exchange warehouses fell by 18% during this period, primarily due to weaker jewelry demand and consumer caution. However, investment interest in bars and coins remained high due to rising precious metal prices and increased demand for safe-haven assets amid geopolitical tensions.

Meanwhile, demand for ETFs rebounded last month, ending the strongest first half of the year on record. From January to June, Chinese gold exchange-traded funds attracted $8.8 billion (+116%).

The market was also supported by the People's Bank of China's continued purchases of the yellow metal, says Ray Jia. In June, the regulator bought 2 tons of gold, marking the eighth consecutive month of increases.

According to the analyst's forecast, investment demand for bullion will remain high in the second half of the year.