Chinese gold ETFs saw their biggest one-day inflow ever as more investors bought gold to stay safe. People are turning to gold because they are worried about the economy and rising global risks. In this article, we will explain why this is happening and what it means for gold and other markets.
Key Points:
- Chinese gold ETFs brought in 3 billion yuan (US$410M) in a single day.
- Gold futures trading fell as speculators cut their positions on COMEX.
- Copper and aluminium stocks in China fell due to rising demand from buyers.
- Investors are reacting to weak prices and uncertain global market conditions.
Why Are Investors Buying Chinese Gold ETFs Now?
Gold is a reliable option when the market is uncertain. Right now, many investors in China are buying gold ETFs to protect their money. Last Thursday, China’s four main gold ETFs brought in almost 3 billion yuan in one day. This was the highest daily inflow ever recorded.
ING analysts Warren Patterson and Ewa Manthey said that investors are reacting to trade issues and global market fears. More people want stable assets, and gold is a top choice.
While Chinese investors are buying gold, traders in the U.S. are cutting back. The Commodity Futures Trading Commission (CFTC) showed that COMEX gold traders lowered their positions for the third week in a row. On April 8, net long positions dropped by over 38,000 lots — the biggest drop since October 2023.
Some of this may be because investors need cash for other trades due to recent price swings in global markets.
What’s Happening With Other Metals Like Copper?
As investors buy Chinese gold ETFs, other markets are also seeing changes. On the Shanghai Futures Exchange, copper inventories fell by 42,795 tonnes last week. This was the biggest weekly drop since April 2020. The total amount of copper in storage is now the lowest since January 2025.
Traders and manufacturers in China are buying more copper now that prices have dropped. Aluminium inventories also fell by 9,447 tonnes, showing that demand is growing there, too.
These drops show strong demand for industrial metals even as gold buying increases.
What Experts Are Saying
Warren Patterson from ING said that more Chinese investors are making smart moves to protect their money. “There’s a noticeable move toward gold investment, particularly across Asia,” he noted.
This move shows that people are preparing for a slower economy. At the same time, the drop in COMEX futures shows that Western investors are being more careful.
So, while some traders are selling, others are buying gold ETFs and base metals to get ready for what’s next.
Conclusion: Why Chinese Gold ETFs Matter Right Now
The record-breaking inflows into Chinese gold ETFs show that gold is still trusted when times are tough. Even though some traders are selling gold futures, Chinese investors are going big on gold ETFs.
Meanwhile, strong demand for copper and aluminium shows that the economy isn’t slowing down everywhere. These trends give us a better picture of what’s really happening in the market.
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Chinese Gold ETFs Hit Record Inflows as Investors Turn to Safe Assets
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What are Chinese Gold ETFs?
Chinese Gold ETFs (Exchange-Traded Funds) are investment funds that track the price of gold. Investors buy shares in these ETFs to gain exposure to gold without having to physically own the metal. -
Why did Chinese Gold ETFs see record inflows?
Chinese Gold ETFs saw their biggest one-day inflow ever because investors are seeking safe assets due to economic uncertainty and rising global risks. On a single day, nearly 3 billion yuan (US$410 million) flowed into these funds as investors turned to gold for protection. -
What factors are driving investors to buy gold now?
The main factors include concerns over global trade issues, uncertain economic conditions, and weak market prices. Investors are looking for stable assets to protect their wealth, with gold being a popular choice. -
How does the behavior of U.S. traders compare to Chinese investors?
While Chinese investors are buying more gold through ETFs, U.S. traders are reducing their gold futures positions. The Commodity Futures Trading Commission (CFTC) reported that U.S. traders cut their gold positions for the third consecutive week in early April 2025. -
What’s happening with other metals like copper and aluminium?
Along with the surge in gold ETF investments, there is growing demand for industrial metals like copper and aluminium. Copper inventories on the Shanghai Futures Exchange fell sharply, and aluminium stocks also declined, indicating increasing demand in these sectors.
