WGC: Chinese Gold ETF Flows Flipped Positive in September

SEATTLE (Scrap Monster): The most recent study on the Chinese gold market was released by the World Gold Council (WGC). In September, there was a seasonal uptick in demand for gold. It stated that additional strength in demand is anticipated soon.

According to Ray Jia, Research Head at China World Gold Council, gold in local currency rose by 3.7% in September, thus ending the quarter with notable gain. The industry withdrew 118 tonnes of gold from the Shanghai Gold Exchange (SGE) during the month. Still, the overall withdrawals were 18% less than the average over the previous ten years. According to the WGC report, the wholesale demand for gold has decreased by 11% year over year to a total of 1,128 tonnes.

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In September 2024, $110 million was invested in Chinese gold exchange-traded funds (ETFs), bringing the total assets under management (AUM) to $7.8 billion. Thirty tonnes of gold have been added to the Chinese ETFs so far this year. SHE gold futures volume, on the other hand, saw a significant 25% month-over-month fall.

WGC anticipates that Q4, which is customarily the peak season for gold consumption, would see an improvement in gold demand. Conversely, a decrease in the demand for gold investments is anticipated due to investors' increased risk tolerance.