Chinese demand lifts gold to six-week high as Bitcoin stalls
Gold rose to $4,213 an ounce, a six-week high, after Chinese gold ETF inflows and central bank purchases. Bitcoin stayed near $64,000 and did not follow the S&P 500’s record highs.
Gold climbed to $4,213 per ounce, its highest level since June 22, rising about 2.8% on the day as Chinese domestic gold-backed ETFs recorded 14 consecutive days of inflows. Bitcoin held near $64,000 during Wednesday’s Wall Street open while the S&P 500 extended its run of all-time highs.
Chinese domestic gold ETFs posted their largest monthly outflows in June, yet year-to-date inflows into those funds reached about 40 billion yuan ($5.6 billion) in the first half of the year. Analysts noted China’s central bank added roughly 82 tonnes of gold over the 20 months through June, which market participants view as supportive of demand for physical gold and ETF holdings.
ETF analyst Eric Balchunas reported that 66% of S&P 500 stocks were trading above their 50-day moving averages and that 57% were outperforming the index’s benchmark tracker.
Bitcoin showed limited movement and did not follow equities. Trader and analyst Rekt Capital, in a post on X, warned that repeated weak rallies could keep Bitcoin forming lower highs and increase the chance of a drop back into the roughly $58,000–$66,000 range. Rekt Capital wrote: “As long as the orange support here produces weaker rallies, price will keep forming Lower Highs to produce an eventual breakdown deeper into the $58000-$66000 Range (blue-blue).”
On-chain research firm CryptoQuant outlined three conditions for a sustainable Bitcoin rebound: steady inflows into U.S. spot Bitcoin ETFs, cooling U.S. bond yields, and the absence of further Federal Reserve rate increases. CryptoQuant also noted the Coinbase Premium — the price difference between Coinbase’s BTC/USDT pair and Binance’s BTC/USDT pair — had been negative for nearly 80 days and would need to return to positive territory to reflect stronger demand in U.S. venues.
The session highlighted a short-term divergence: gold rose on reported physical demand and central bank accumulation in China, while Bitcoin remained range-bound without the on-chain or macro indicators CryptoQuant listed.
Global central banks have been buyers of gold in recent years, and gold-backed ETFs are a common channel for retail and institutional exposure. U.S. spot Bitcoin ETFs, launched in 2023, remain a focus for analysts tracking flows into digital assets.
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