China Gold Market Update: Seasonal Demand Rebound Boosts Gold Price and Investment Activity

Gold Price Weakness in March Offsets Q1 Gains

In Q1 2026, the gold price moved in different ways. The price dropped in March. The LBMA Gold Price PM in USD fell by 12%. The Shanghai Gold Benchmark Price PM in RMB fell by 11%. Local currency changes helped soften this drop somewhat. Fears of fewer Fed cuts and tight inflation pushed prices lower. Investors closed out futures, ETFs, and options. Both benchmark prices still finished Q1 with a 7% gain. A price recovery began at the end of March and went into April.

Seasonal Wholesale Gold Demand Rebounds in China

Wholesale gold demand in China jumped 57% in March to 134 tonnes. More workdays and post-New Year restocks from banks, jewellers, and refiners drove this move. Demand was 12% higher than in March 2025. A lower price encouraged buyers to fill their stocks. Demand stayed below the ten-year monthly norm, as the jewellery sector stayed weak. Q1 total demand reached 345 tonnes, a 3% rise from last year. However, it remained 23% lower than the decade average. Investment buying filled the gap when jewellery demand lagged.

Chinese Gold ETFs See Record Inflows and Growing Assets Under Management

Gold ETFs in China grew strongly in Q1. Geopolitical tensions, a drop in stock values, and a weakening local currency attracted safe-haven buying. Chinese investors added RMB 12 billion in March, which increased ETF holdings by 8.4 tonnes. Total Q1 inflows reached a record RMB 59 billion. ETF assets grew to RMB 304 billion while holdings climbed to 298 tonnes. This record growth marks the strongest quarterly rise to date.

China’s Central Bank Continues Steady Gold Accumulation

China’s central bank kept a steady pace in buying gold. In March, it added 5 tonnes, the largest call since February 2025. By the end of Q1, gold reserves grew to 2,313 tonnes. These reserves now make up 9% of the total foreign reserves. A slight drop occurred because of the lower gold price. Quarterly buys reached 7 tonnes, the highest since Q1 2025. The bank’s actions show a steady plan as market conditions change.

Rising Gold Imports Support Replenishment Needs

At the start of 2026, gold imports in China increased. In January, net imports reached 77 tonnes. In February, they rose to 96 tonnes, a 63-tonne gain over last year. Strong local demand and a rising gold price bonus encouraged importer action. This import strength helped local restocking ahead of seasonal buying and safe-haven flows.

Summary

China’s gold market hit a seasonal lift in March with increased wholesale demand. A drop in the gold price trimmed Q1 gains. Strong investment flows from ETFs and steady central bank purchases helped balance the weak jewellery sector. Price drops and rising geopolitical risks pushed many buyers toward safe havens. Rising imports also aided local stock replenishment. These drivers shaped the market as it faces a slower Q2. —

This article reports the latest gold news and market shifts from the World Gold Council as of April 2026. It names trends in gold price moves, investment flows, central bank actions, and demand in China’s major gold market.

—
📝 About This Article  

This article was generated by Hivebox AI in collaboration with nGRND.
—
⚠️ Disclaimer  

This content is for informational purposes only and does not constitute financial or investment advice.
Please consult with a qualified financial advisor before making any decisions related to investments, markets, or assets.  
—
Note on Accuracy & Liability  

While we strive to provide accurate and up-to-date information, neither Hivebox AI nor nGRND guarantees completeness, reliability, or suitability.  

Use this content at your own risk. Neither party assumes liability for any losses you may incur.
—
Thank you for reading.