China Gold Demand Surges Amid Tariff Shock and Stock Market Slump

Gold demand soars across Asia as new U.S. tariffs rattle markets and trigger a stock sell-off. Investors rush to gold as a shield against uncertainty and economic turmoil.

  Asia Gold Demand Surges Amid Tariff Shock and Stock Market Slump (photo credit: PR)
Asia Gold Demand Surges Amid Tariff Shock and Stock Market Slump
(photo credit: PR)

Amid heightened global economic tension, demand for physical gold in Asia has surged as fresh U.S. tariffs and a steep stock market sell-off prompt investors to flock toward safe-haven assets.

In China, the world’s top gold consumer, dealers are reporting robust buying activity. Premiums have climbed to $8–$15 per ounce over global spot prices—up from $6–$13 just a week ago—as escalating fears over President Trump’s new tariff package ripple through financial markets.

The announcement of a 10% universal tariff on most imports, coupled with targeted increases on over 60 countries, has shaken investor confidence and triggered a significant retreat from equities. Major Asian stock indices have recorded a sharp decline, with the Shanghai Composite dropping over 3.5% this week alone.

"What we’re seeing is a decisive move toward tangible assets," said a Hong Kong-based metals trader. "With trade uncertainty reaching new highs and equity markets turning volatile, gold is regaining its appeal as a shield against systemic risk."

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India Lags Amid Price Volatility

While Chinese demand has accelerated, India’s gold market remains cautious. Local dealers offered discounts of up to $18 per ounce over official domestic prices, though narrowing from last week’s $25 amid falling imports.

"The price swings have created a pause in retail demand," noted a Mumbai-based bullion dealer. "Buyers are watching closely but waiting for prices to stabilize."

India’s domestic gold prices remain elevated, currently trading near 88,400 rupees per 10 grams, having eased from a record 91,696 rupees hit earlier this week. The surge has led to a 13% price gain in 2025 so far.

Central Bank Buying and Global Trends

Globally, central banks are expected to maintain their aggressive gold-buying pace, citing growing geopolitical instability and the weakening confidence in fiat currencies. China’s central bank alone added over 20 tons of gold in March, continuing a trend that shows no signs of slowing.

Elsewhere in Asia:

  • Singapore dealers reported premiums ranging from par to $3.

  • Hong Kong premiums stood between $1–$2.

  • Japan saw flat pricing to a $1 premium, with traders noting mixed sentiment and tactical profit-taking.

"While there’s selling at the highs, the dips are getting bought aggressively," said a Tokyo-based metals trader. "People are hedging against a very uncertain global backdrop."

Looking Ahead

With the U.S. administration expected to announce additional economic measures in the coming weeks and markets still digesting the impact of the new tariffs, gold could continue to benefit from a wave of risk-off sentiment across global portfolios.

As one analyst in Singapore noted, "This isn’t just about inflation or currency anymore—it’s about protection. And gold, as always, is the universal insurance policy."

This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (jpost.1eye.us) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. jpost.1eye.us is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.