Bloomberg reports that gold’s record-breaking rally is making even bigger waves in China, spurring retail demand and driving unprecedented trading volume.
As prices swing, signs of surging intraday trading have emerged, with yuan-denominated futures hitting historic volatility highs. Traders are navigating trade tensions with skill. Meanwhile, ETF inflows are soaring, retail activity is booming, and local price premiums are widening.
China, as the world’s largest gold consumer and a major producer, holds significant influence over global gold markets. Gold has been the top-performing major commodity this year, fueled by safe-haven demand amid aggressive trade policy shifts and central banks’ buying spree.
Jinrui Futures said: “Local media coverage amplifies fear and greed.” Despite brief midweek selloffs, most retail investors merely paused rather than exited the market.
Gold is a traditional household investment in China, and a retail frenzy is clearly unfolding—possibly surpassing last year’s feverish episodes.
Beyond futures speculation, investors are stockpiling gold in other forms. Inflows into local gold ETFs this month have already outpaced all of last year. The Shanghai gold premium over global prices has surged to record highs.
As Chinese trading heats up, many believe the rally could continue despite gold’s sharp rise. Goldman Sachs forecasts gold could hit $4,000 per ounce by mid-2026.
Investor sentiment in China is exuberant. Social media platforms like WeChat are filled with posts from inexperienced retail investors eager to join the gold rush. Some users even claim they’re investing their life savings—or taking out loans—to chase higher prices.
During times of market volatility, regulators often step in to cool things down. On Monday, the Shanghai Gold Exchange issued a warning about market risks, urging caution. The next day, gold prices peaked—then sharply dropped.
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