"Gold Prices Could Soar to 7.2 Million Won per Ounce"... Unstoppable Gold Investment Boom in China Despite Warnings

Gold Preference Grows Amid Trump-Led Tariff War
Unprecedented Gold Trading Volumes on Shanghai Exchange
"Chinese Investors Play a Role in Gold Price Surge"

As the tariff war triggered by U.S. President Donald Trump intensifies, a gold investment boom is sweeping China, fueled by a growing preference for gold as a safe haven asset.

On April 25, Bloomberg reported, "Gold prices are experiencing record-breaking gains, creating a growing ripple effect in China. This is boosting retail demand and leading to unprecedented trading volumes on the Shanghai exchange, even prompting warnings from Chinese authorities."

According to the report, day trading has surged in China, and gold futures trading denominated in yuan is also showing record activity. Over the past three trading days, daily trading volume on the Shanghai Futures Exchange exceeded one million contracts?far higher than usual. This month, net inflows into China's gold exchange-traded funds (ETFs) have already surpassed last year's total holdings.

John Reade, Chief Market Strategist at the World Gold Council (WGC), said, "Despite the tremendous increase in trading volume, open interest has not grown significantly. This indicates that day trading is taking place." He added that Chinese investors played a role in pushing international gold prices to all-time highs earlier this week.

Samson Li, an analyst at the Hong Kong Commodity Discovery Fund, noted that some are predicting prices could rise to $5,000 per ounce. He stated, "China wants a hedging strategy against geopolitical tensions, so the gold bull market is likely to last for a long time." Li also commented, "No matter what President Trump says, at least in China, people do not believe that U.S.-China relations can recover. This reflects the current sentiment among the Chinese."

Meanwhile, on April 22, international gold prices soared to an all-time high of $3,500.05 per ounce during intraday trading. The financial investment industry forecasts that gold prices could rise to $4,000 next year. Gregory Shearer, Head of Research at JP Morgan, asserted, "Gold prices will surpass $4,000 per ounce in the second quarter of next year."