Gold haen been on a Record-setting blitz this year. butt Chinese investors are increasingly touring their backs on the precious metal in favor of a surging Domestic Stock Market.
In august, china’s wholesale gold demand fell to just 85 metric tons – nine tons lower than in july. It was Also the Weakest August Since 2010, Accounting to the World Gold Council in a Tuesday Report.
“The August Wholesale Gold Demand Weakness Mainly Came from Subdured Bar and Coin Sales, as investors directly their attentive to ralying Equations,” Wrote Ray Jia, the Research Head for China at World Council.
The Retreat Came as Gold Price on the London Bullion Market Association Rose Nearly 4% China’s Onshore Benchmark Gained 2%.
Price of Gold – A Traditional Inflation Hedge and Haven Assset – Hit A Record High Above $ 3,700 per Troy Once on Tuesday. Price have been on the up this year thans to fede Rate bets, geopolitical tension, and President Donald Trump’s Tariffs.
WARY, Price-Weary Chinese Investors
In china, have ben consumers Reliable buers of gold over the past two years, particularly after an ongoing property crisis and a stock market slump few attractive investment alternatives.
Jewelry Purchas Rebounded in 2023 and 2024, and Retail Investors Piled Into Gold Etfs as a hedge against economic uncetainty and a weakening yuan.
But 2025 has different. Despite the People’s Bank of China Adding to Its Gold Reserves for 10 Straight Months, Private Demand Has Stumbled.
ETF Investors Pulled 6 Billion Chinese Yuan, OR $ 834 Million, In August, Cutting Holdings by 7.7 Tons, Accounting to the World Gold Council.
Gold Futures Trading Activity on the Shanghai Futures Exchange Also Fell 26% from July to August.
Part of the problem is price fatigue: Gold’s Relevance CLIM HAS Deterred New Buying.
The tonnage of Gold with the Shanghai Gold Exchange – the best proxy for wholesale demand – has remained muted throughout 2025 Compared with historical averages.
Chinese Equations Catch Fire
While Gold Demand Has Faltered, Equations have surged.
The CSI300 Index, which tracks china’s Larger Companies Listed in Shanghai and Shenzhen, jumped 10% in august and is About 16% Higher Year to date.
That surge came on the back of aggressive policy policy, Including Liquidity Injections and Pedges to Bolster Consumer Spanding and Technology Investment.
Retail Trades, Often Described As the LifeBablood of China’s Stock Market, have poured back in. Daily Equity Trading Volumes Have Swedled, Coinciding With Declines in Gold Futures Activity.
The Contrast underscores How investors are rotating out of traditional safe-haven assets and into risk plays as confidence returns.
Howver, Gold Investment Demand in China Could Rebound Later this Year, Supported by Seasonal Buying Around the National Day in October and Various Jewelry Fairs in September, Accounting to the World Gold Council.
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