China National Gold Group Gold Jewellery ETF has seen strong inflow of funds, exceeding the total amount of the first quarter within the first 11 days of April.

The latest data from the World Gold Council (WGC) shows that as of mid-April, the amount of funds flowing into physical gold-backed exchange-traded funds (ETFs) in the Chinese market has exceeded the entire first quarter, leading the gold ETFs listed in the US during the same period. John Reade, Senior Market Strategist at WGC, stated on social media this Monday that in the first 11 days of April, the holdings of the China National Gold Group Gold Jewelry ETF increased by 29.1 tonnes, compared to only 23.5 tonnes of cumulative inflows in the first quarter of this year (January to March). This trend indicates that following the first quarter dominated by US-led gold fund flows, Chinese investors' strong interest in gold may become the main theme in the second quarter. According to WGC data, while US-listed gold ETFs were more active in the first quarter of this year, since April the inflow of funds into US ETFs has been 27.8 tonnes, falling behind the Chinese market. Gold has always been seen as a safe-haven asset for hedging geopolitical and economic risks. With global uncertainties on the rise, especially driven by the Trump administration's tariff policies, gold has risen by 22% this year, reaching a historical high of $3,245.42 per ounce this Monday. The trade war between China and the US has also had an impact on the Chinese yuan exchange rate. Last week, the yuan fell to its lowest level since 2007 against the US dollar, depreciating by about 0.6% since April 2 when Trump announced "reciprocal tariffs". At the same time, the first quarter of this year saw the largest quarterly increase in fund inflows into global gold ETFs in nearly three years, indicating a widespread strengthening of investor interest in gold. Another important signal is the rapid expansion of gold prices premiums in the Chinese market. As of last week, the premium of China National Gold Group Gold Jewelry over London benchmark prices reached 1%, higher than the 0.2% from the previous week. Traders in the market are quoting prices ranging from $24 to $54 per ounce. An unnamed gold trader stated that recent activities of global precious metal banks in the Chinese market have been "abnormal," with many shipping large amounts of gold to China to meet the market demand caused by the high premiums.