Gold File photo: VCG

Since the beginning of 2025, gold-themed investment funds have been selling well. Now, the scale of 53 gold-themed funds in China has more than doubled from the end of 2024. Analysts said that this year, gold assets remain one of the categories that investors pay the most attention to.

Multiple favorable factors support their market values. In the future, gold assets will continue to be worth holding, and the logic behind their upward trend is unchanged.

According to statistics from Wind, a Chinese provider of financial information, the total assets under management of 53 gold-themed funds reached 246.9 billion yuan ($34.4 billion) now, an increase of 128.5 billion yuan, or a surge of 108.53 percent, from 2024.

Meanwhile, all 53 gold-themed funds have seen their net asset values rise this year, with 22 of them posting year-to-date growth exceeding 30 percent, according to Wind.

Apart from investment funds, gold-themed exchange-traded funds (ETFs) also witnessed a surge in sales. A fund is a broad investment vehicle that pools money to invest in various assets, managed actively or passively. An ETF is a type of fund traded on stock exchanges like shares, typically tracking an index, with lower costs and higher liquidity than mutual funds.

According to the China Gold Association, in the first half of 2025, domestic gold ETF holdings increased by 84.771 tons, a 173.73-percent rise compared to the first half of 2024. By the end of June, total holdings stood at 199.505 tons.

At the end of June, the total size of 28 gold ETFs and the associated funds reached 260.337 billion yuan, up 49.73 percent quarter-on-quarter, with all products showing growth, data showed.

Eight gold ETFs exceeded 10 billion yuan in scale in the second quarter, with several gold ETFs rising over 10 percent. At the end of June, the value of Hua'an Gold Easy ETF neared 58 billion yuan in scale, with multiple gold ETFs exceeding 20 billion yuan, according to Choice, another financial data provider.

As gold prices recently consolidated at high levels, some investors opted to secure profits. From July 1 to Friday, gold ETFs saw net redemptions exceeding 1 billion units.

The China Gold Association's report noted that, coupled with continuous fund inflows, gold prices rose. In April, COMEX gold hit a record high of $3,509.9 per ounce, fueling market optimism. Lately, gold prices fluctuated significantly, consolidating at around $3,400 per ounce on Friday.

After recent volatility, COMEX gold remains in a high consolidation phase, with market analysts closely watching whether it will regain momentum.

Topsperity Securities noted that, against the backdrop of global volatilities, it remains bullish on gold. Meanwhile, the long-term trend of the weakening position of the US dollar is accelerating, which is expected to provide sustained momentum for gold assets.

Additionally, as the US Federal Reserve gradually enters a rate-cutting cycle and China implements both monetary and fiscal stimulus measures, precious metals are poised for a prolonged bull run, with domestic demand-related varieties likely exhibiting greater upside potential, Topsperity Securities said in a note.

Global Times