Renewed demand from Chinese investors and central bank purchases offset Western ETF outflows, supporting gold prices amid equity volatility.
Chinese investors poured $1.2 billion into gold exchange-traded funds in the longest buying streak since March, reversing June’s record outflows. The shift reflects institutional demand for alternative assets as equity markets face volatility, reinforcing gold’s structural support despite consolidation below January highs.
The People’s Bank of China has accelerated gold inventory buildup in Hong Kong, part of a broader trend of repatriating reserves from London. This official sector demand, alongside retail inflows, has countered Western ETF redemptions earlier this year, providing a floor for prices.
Gold’s near-term outlook remains tied to Federal Reserve policy expectations, with markets split on a September hold or hike. A dovish repricing could further boost demand, aligning with China’s ongoing accumulation.