Chinese gold ETFs see record inflows in Q1 as investors, wholesalers and the PBoC jumped on lower prices to stock up – WGC’s Jia

Chinese gold demand remained exceptionally strong in Q1 despite the March price washout, with WGC’s Ray Jia saying local investors, wholesalers and the PBoC all bought the dip. The LBMA Gold Price PM fell 12% in March, but still finished Q1 up 7% in USD terms, while Chinese ETF inflows continued for a seventh straight month and hit a quarterly record of RMB59bn ($8.5bn), or 50t, lifting holdings to 298t and AUM to RMB304bn ($44bn). Wholesale demand also improved seasonally: banks, jewellers and refiners withdrew 134t from the SGE in March, up 57% m/m and 12% y/y, taking Q1 wholesale demand to 345t, +3% y/y but still 23% below the 10-year average. Jia said the March rebound reflected post-CNY restocking, more working days, and opportunistic replenishment after the price pullback, though jewellery demand remains structurally weak relative to history. On the flow side, Chinese gold ETF buying was supported by safe-haven demand, a 6% drop in the CSI300, a 0.8% RMB depreciation, and heightened geopolitical risk tied to the US-Israel-Iran conflict. SHFE gold futures volumes averaged 443t/day in March, down 12% m/m but still well above the five-year average of 265t/day, suggesting activity remains elevated even after volatility eased. The PBoC also continued to add to reserves on the dip, reinforcing the bullish institutional bid under Chinese gold.