Chinese gold demand remained strong at the start of the year, with inflows into gold exchange-traded funds hitting a record high for January, according to the World Gold Council.
In its Monthly Review of the Chinese Gold Market, the World Gold Council said Chinese gold ETFs recorded net inflows of 44 billion yuan ($6.2 billion), equivalent to 38 metric tons, in January, marking the highest January inflow on record. Both total assets under management and total ETF gold holdings reached new all-time highs.
Physical demand and festival restocking support market
Upstream physical demand also remained resilient. Total gold withdrawals from the Shanghai Gold Exchange reached 126 tons in January, up 1 ton year-on-year and 11 tons month-on-month.
The World Gold Council attributed the strength to robust gold bar sales and increased inventory restocking by jewelry retailers ahead of the Spring Festival, a period that typically drives seasonal demand.
Central bank buying continues
On the official sector side, the People’s Bank of China continued to add gold to its reserves in 2026. The central bank increased its holdings by 1.2 tons in January, bringing total gold reserves to 2,308 tons.
Gold now accounts for 9.6% of China’s total foreign exchange reserves, underscoring continued diversification efforts amid global macro uncertainty.
Investor implications
The record ETF inflows highlight strong investor appetite for gold in China, reflecting a combination of safe-haven demand, seasonal buying, and sustained central bank accumulation. The data reinforces gold’s role as a core defensive asset for both retail and institutional investors at the start of the year.