{"id":1352,"date":"2026-08-18T11:55:07","date_gmt":"2026-08-18T11:55:07","guid":{"rendered":"https:\/\/goontrading.com\/en\/chinese-etfs-rebound-in-july-as-net-longs-rise-but-wholesale-and-jewelry-demand-continue-to-lag-wgcs-jia\/"},"modified":"2026-08-18T11:55:07","modified_gmt":"2026-08-18T11:55:07","slug":"chinese-etfs-rebound-in-july-as-net-longs-rise-but-wholesale-and-jewelry-demand-continue-to-lag-wgcs-jia","status":"publish","type":"post","link":"https:\/\/goontrading.com\/en\/chinese-etfs-rebound-in-july-as-net-longs-rise-but-wholesale-and-jewelry-demand-continue-to-lag-wgcs-jia\/","title":{"rendered":"Chinese ETFs rebound in July as net longs rise, but wholesale and jewelry demand continue to lag \u2013 WGC\u2019s Jia\u00a0"},"content":{"rendered":"

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\"Chinese<\/p>\n

\n

(Kitco News) \u2013 As gold\u2019s price volatility declined last month, Chinese futures trading volumes cooled but net longs rose, while the country\u2019s gold ETFs recorded positive flows which have continued into August, according to Ray Jia, research head for China at the World Gold Council (WGC).<\/p>\n

In the WGC\u2019s latest China gold market update, Jia noted that both the LBMA and Shanghai gold prices were virtually unchanged in July.\u00a0<\/p>\n

\u201cOur\u00a0gold return attribution model\u00a0shows that a weaker dollar and improved investor positioning supported gold, offsetting pressure from rising yields,\u201d he said. \u201cAnd in early August, gold rose higher on softer US labour market data and cooling inflation, which delayed expectations of rate hikes from the Fed; the RMB gold price rallied above its 60-day moving average of around RMB920\/gram for the first time since mid-March.\u201d\u00a0<\/p>\n

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Meanwhile, Chinese gold ETFs\u00a0saw $744 million in net inflows in July, following the significant outflows seen over the previous months. \u201cHealthy inflows lifted Chinese gold ETFs\u2019 total AUM by 3% to RMB 250bn (US$37bn),\u201d Jia wrote. \u201cIn tonnage terms, holdings increased 5t to 282t. In July, investor interest was buoyed by recurring geopolitical uncertainty, weaker equities and persistent gold accumulation by the PBoC. Meanwhile, rising institutional investor participation as the gold price stabilised also supported demand in the month.\u00a0<\/p>\n

\u201cDespite outflows in May and June, Chinese gold ETFs attracted RMB45bn (US$6.3bn, 34t) between January and July, the second strongest y-t-d performance on record,\u201d he added, pointing to increased institutional participation and higher allocations.\u00a0\u201cAnd it is worth noting that so far in August, Chinese gold ETFs have added ~8t with inflows seen almost every day in the month, mainly supported by the strong gold price momentum.\u201d<\/p>\n

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And while gold futures volumes were down last month, net longs were up.<\/p>\n

\u201cGold futures trading volumes on the SHFE further moderated in July, falling 4% m\/m to 292t\/day,\u201d Jia said. \u201cTrading activity cooled slightly as gold price volatility declined. Top 20 gold futures participants\u2019 net longs \u2013 due to data limitation \u2013 at the SHFE rose 24t to 117t by the end of July, reflecting improved market sentiment.\u201d<\/p>\n

Wholesale demand, however, remained tepid last month as jewelry sector weakness combined with the seasonal lull.<\/p>\n

\u201cWholesale gold demand, as measured by SGE withdrawals by banks, jewellers and refiners, fell 8% m\/m to 80t in July,\u201d he noted. \u201cThe decline was largely seasonal, as the jewellery sector is typically tepid in Q2 and early Q3. Industry feedback also suggests that investment demand was broadly unchanged from June and therefore failed to offset softer jewellery-related buying.\u201d<\/p>\n

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\u201cOn a y\/y basis, SGE withdrawals were down 15%, reflecting subdued jewellery consumption amid higher gold prices than a year ago and still-weak consumer confidence.\u201d<\/p>\n

Meanwhile, the People\u2019s Bank of China continued its torrid pace of gold accumulation with a 20-tonne addition to its gold reserves in July, bringing official gold holdings to 2,366 tonnes, or 8% of total foreign exchange reserves.\u00a0<\/p>\n

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\u201cFollowing the largest monthly addition since October 2023, the PBoC\u2019s gold-buying streak has now reached 21 months, the longest on record,\u201d Jia pointed out. \u201cThe central bank continued to accelerate its buying, likely taking advantages of a lower gold price and underscoring gold\u2019s strategic role in reserve diversification amid an increasingly fragmented geopolitical landscape.\u201d<\/p>\n

And Chinese imports also rose in June \u2013 the most recent period for which data are available \u2013 with the country\u2019s net gold imports totaling 152 tonnes during the month, an uptick of 2 tonnes compared to May and the highest monthly level since March 2024.\u00a0<\/p>\n

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\u201cOver the course of H1 China imported 764t of gold, 138% higher y\/y, reflecting strong investment buying during the period,\u201d he added.<\/p>\n

Looking ahead, Jia said that if the gold price continues to make gains, Chinese investment demand may follow. \u201cHowever, the domestic equity market rebound in early August \u2013 should it persist \u2013 could divert attention,\u201d he said. \u201cWholesale gold demand could receive seasonal support from a rise in jewellers\u2019 inventory replenishment ahead.\u201d<\/p>\n

See live <\/em>precious metals prices<\/em> for gold, silver, platinum and palladium \u2014 in USD, CAD and 12 more currencies.<\/em><\/p>\n<\/div>\n

Kitco.com<\/p>\n","protected":false},"excerpt":{"rendered":"

\u26a1 Trade with Ultra-Low Spreads on IC Markets! \u2794 [Link] \ud83c\udf81 Get Your Exclusive XM Deposit Bonus Now! \u2794 [Link] \ud83d\udca1 Master the Markets with FXTM Copy Trading \u2794 [Link] (Kitco News) \u2013 As gold\u2019s price volatility declined last month, Chinese futures trading volumes cooled but net longs rose, while the country\u2019s gold ETFs recorded …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40],"tags":[],"class_list":["post-1352","post","type-post","status-publish","format-standard","","category-gold-commodities-trade-news"],"_links":{"self":[{"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/posts\/1352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/comments?post=1352"}],"version-history":[{"count":0,"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/posts\/1352\/revisions"}],"wp:attachment":[{"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/media?parent=1352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/categories?post=1352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goontrading.com\/en\/wp-json\/wp\/v2\/tags?post=1352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}