Gold ETFs surge in China with a 52% increase in demand since August 2025.

The search for portfolio protection and diversification has gained momentum in China in recent months. Demand for gold-backed ETFs in the country jumped 52% in just five months, from 188,8 tons in August 2025 to 286,3 tons recently, according to market data.

The move highlights a significant shift in the behavior of Chinese investors, who have increased their exposure to the precious metal amid global economic uncertainties, stock market volatility, and adjustments in international monetary policy expectations.

Gold-linked ETFs (exchange-traded funds) allow investors to gain exposure to the price of the metal without the need for physical storage. In practice, these funds hold gold reserves as collateral and reflect its price fluctuations in the shares traded on the exchange. The increase of almost 100 tons in the period reinforces that the demand was not a one-off event, but rather consistent over the past few months.

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Experts suggest that the growth in demand may be linked to three main factors: protection against volatility, currency diversification, and the search for assets considered a safe haven. With fluctuations in global stock markets and persistent geopolitical uncertainties, gold has regained a strategic place in the portfolios of institutional and individual investors.

China is going all in on gold!🚨

Reserves jumped 15.7% MoM in January to a record $369.6B, marking the 8th straight monthly increase.

Since October 2022, gold reserves are up $266.9B, at 260% surge.

Holdings now stand at a record 2,308 tonnes, with the PBOC buying for 15… pic.twitter.com/yqaby9G7wq

Furthermore, the increased interest in gold ETFs comes at a time when Chinese investors are also reviewing their exposure to other risk assets. In scenarios of economic tension or expectations of a slowdown, the metal often gains prominence as a historical store of value.

The 52% increase since August 2025 places China among the main drivers of global demand for gold ETFs in this cycle. This significant increase could directly influence the balance between supply and demand in the international gold market, especially if the positive flow continues in the coming months.

Although the price of gold is influenced by a number of variables — including interest rates in the United States, the strength of the dollar, and geopolitical tensions — the surge in Chinese demand adds a relevant structural component. If the appetite for safe haven remains high, the movement could sustain the metal at elevated levels and even drive new highs, depending on global macroeconomic conditions.