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Chinese gold ETFs April inflows surpass first quarter total, WGC says

World Gold Council data shows that investment flows into Chinese gold ETFs have outpaced those of the entire first quarter, and even surpassed the inflows recorded by U.S. listed funds.

John Reade senior market strategist of the WGC said in social media Monday that gold ETFs in China increased 29.1 tons in the first 11 days of April. This compares to the 23.5 tons of inflows registered from January-March.

He said that the second quarter could have a different theme. "The first quarter was dominated by U.S. Tariff-related gold flows, and Western ETF purchases," he explained.

According to data, while U.S.-listed funds led the activity in the first three months, they are lagging behind China with inflows so far in April of 27,8 tons.

Gold, which is seen by many as a hedge to geopolitical risks and economic uncertainties, has risen 22% this year. It reached a record-high of $3,245.42 an ounce on Sunday, fueled by the uncertainty caused by President Donald Trump's tariff policy.

Last week, yuan-to-dollar tariffs between China and the U.S. pushed the currency to its lowest level since 2007. Since Trump's announcement of reciprocal tariffs on April 2, the Chinese currency has fallen by about 0.6%.

The largest quarterly inflows in three years were recorded in the Global Gold ETFs that store bullion on behalf of investors from January to March.

Last week, the gold premium in China was 1% higher than London's benchmark, compared with 0.2% one week before. Dealers charged premiums between $24 and $50 per ounce.

Unnamed gold traders said that global bullion bankers were "unusually" active in China, last week. They imported significant amounts of gold because of the high premium. Reporting by Polina Devtt and Rajendra Jhadhav; Editing and production by Pratima Dasai and Barbara Lewis

(source: Reuters)