The World Gold Council (WGC) has released a report that has stirred the global gold market, particularly impacting gold investors. According to the report, China sold approximately 90 tons of gold in June 2025 through the Shanghai Gold Exchange. This significant move has led to speculation about a drastic fall in gold prices.
This figure of 90 tons is considerably lower than the average withdrawal over the past 10 years, which raises questions about its precise impact on domestic and international gold markets.
Impact on Gold Prices:
For the past few years, gold prices have been steadily rising, primarily influenced by international circumstances. In India, gold prices have even crossed the one lakh mark. However, China’s decision regarding its gold investments is now having a serious impact on global demand and prices.
Despite Chinese investors making record-level gold investments in the first six months of this year, the WGC’s report of a 90-ton sale from the Shanghai Gold Exchange in June 2025 suggests a new dynamic in the market. This development is particularly significant for India, where gold prices have already been soaring.
The global gold markets are beginning to react to China’s actions, and there is considerable curiosity about how this will ultimately affect gold prices worldwide. People are always interested in gold prices, but this large news from China has shaken the global gold market, and its effects are already being observed in India’s gold prices.
Recent Trends and Future Outlook:
The WGC’s latest report indicates that the 90-ton sale in June 2025 is indeed a notable event. This year, in the first six months, gold prices rose by 23% in US dollars and 21% in Chinese Yuan, marking the highest increase since 2016.
The People’s Bank of China, the country’s central bank, has been consistently purchasing gold for eight consecutive months. In the first six months of this year, it acquired 19 tons of gold, bringing China’s total gold reserves to 2,299 tons. Although gold futures trading saw a slight slowdown in June, the average daily volume from January to June was 534 tons, which is considered a record high.
In May 2025, China imported 89 tons of gold, a decrease of 21% compared to April and 31% compared to May of the previous year. This decline is primarily attributed to a drop in demand for jewelry.
However, increased gold purchases by Chinese investors are significantly boosting global demand, which will directly impact gold prices in India. It is anticipated that gold prices in the Indian market may increase due to the demand from Chinese investors.
Therefore, while the recent sale of 90 tons of gold by China has created a stir, the overall picture suggests a complex interplay of factors that will determine the future trajectory of gold prices.
