BEIJING — Holdings of gold-backed exchange-traded funds (ETFs) in China added 11.5 metric tons in the first quarter of 2021, data from the China Gold Association (CGA) showed.

By the end of March, total holdings of gold ETFs in the Chinese market rose to a record of 72.4 tons, fueled by stock market volatility and lower gold price in domestic market.

Gold is widely viewed as insurance against accelerating price rises. Since the beginning of 2020, concerns over the impact of the COVID-19 pandemic have boosted interest in the yellow metal, most notably gold ETFs.

Last year, net inflows into global gold ETFs reached an annual record of 877 tons.

But as the trend reversed in the first quarter due to price fluctuations and rising yields of US bonds, global gold ETFs saw outflows of 177.9 tons during the January-March period.