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    China’s gold market cools amid ETF outflows: price signals for mine planners

    June 13, 2026|

    Reviewed by Joe Ashwell

    China’s gold market cools amid ETF outflows: price signals for mine planners

    First reported on MINING.com

    30 Second Briefing

    China’s gold market cooled sharply in May as domestic gold ETFs saw RMB8.2 billion (£0.9bn) of net outflows, ending an eight‑month inflow streak, and Shanghai Gold Exchange withdrawals dropped to 64 tonnes, the weakest May since 2010. The Shanghai Gold Benchmark Price PM fell 2.7% versus a 1.4% decline in the LBMA Gold Price PM, with a stronger renminbi, buoyant Chinese equities and strained jewellery affordability all diverting capital from bullion. In contrast, the People’s Bank of China added 10 tonnes, lifting official reserves to 2,332 tonnes, while net gold imports reached 157 tonnes in April.

    Technical Brief

    • Chinese gold ETFs’ assets under management dropped 5% in May to RMB289 billion.
    • Collective ETF gold holdings declined by 8.3 tonnes, ending the month at 293 tonnes.
    • Outflows from Chinese gold ETFs persisted into the first week of June, extending May’s reversal.
    • Shanghai Futures Exchange gold futures volumes averaged 301 tonnes/day in May, versus 307 tonnes/day in April.
    • Shanghai Gold Exchange withdrawals fell 38% month-on-month and 36% year-on-year to 64 tonnes.
    • People’s Bank of China has bought gold for 19 consecutive months, totalling 67 tonnes over that period.
    • Central bank added 10 tonnes in May alone, its largest monthly purchase since December 2024.
    • China’s official gold reserves now stand at 2,332 tonnes, equal to 8.9% of FX reserves.
    • Net gold imports reached 157 tonnes in April, up 10% month-on-month and 40% year-on-year.

    Our Take

    The World Gold Council has been central to several recent pieces in our database, including work on central bank buying patterns and its ‘Gold as a Service’ infrastructure concept, signalling that the current ETF outflows in China are being tracked against a much broader push to modernise how gold bullion is held and traded globally.

    China’s continued official gold accumulation via the People’s Bank of China contrasts with the April global central bank data in our coverage, where net buying was only 17 tonnes, suggesting China alone is now a disproportionately important driver of official-sector demand relative to other reserve holders.

    With China’s gold market cooling while Russia claims higher gold output than China in another recent item, the combination of softer Chinese ETF and physical demand and rising non‑Chinese mine supply could put more pricing power in the hands of low‑cost producers and central banks rather than retail investors in China.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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