Chinese Households Buy Gold Dip as Prices Test $4,000, Physical Demand Supports Bullion

Chinese households have increased gold purchases over the past two months as prices softened and onshore equities declined, providing support as bullion tests $4,000 an ounce. Volumes on the Shanghai Gold Exchange's Au99.99 contract jumped to 43 million lots last week, or roughly 430 tons, the highest since April. The contract requires full payment and mandatory delivery, reflecting physical rather than leveraged demand. Zijie Wu, an analyst at Jinrui Futures Co., said domestic demand is "increasingly running against the price trend, strengthening as prices fall," with October's Golden Week festive buying also contributing. Purchases through bank accumulation plans in the first nine months already surpassed the 2025 full-year total, according to people at major banks, with buying accelerating last week as prices eased. Gold has gained appeal as a safe haven amid a property slump, record-low government bond returns and a stock market that has lost $2.4 trillion since its May peak. Mainland buying has helped keep the benchmark price largely above $4,000 an ounce despite US-Iran war inflation concerns and rate-hike bets.