The Middle–Lower Yangtze River Valley metallogenetic belt (MLYRB) is a large and economically valuable porphyry–skarn Cu–Au ore belt in China with a total reserve of >600 tonnes of gold. Orebodies in the MLYRB are commonly stratabound and extend for several tens of metres in length and locally for more than 1000 m. However, the origin of the stratabound orebodies is uncertain, with proposals including a magmatic or sedimentary genesis, and the specific processes by which these gold deposits were formed are also unclear. Here we report a study of the representative stratabound Jiaochong Au deposit in the Tongling ore district, where stratified gold orebodies are hosted at the Triassic -Permian strata boundary. A detailed field survey, petrologic observations, in situ sulfur isotopic analysis, and major and trace element compositional analysis of gold and sulfide grains were carried out to determine how the gold was enriched. Field survey shows that precipitated sulphides exhibit obvious mineral and textural zonation from wall-rock to orebody centres as follows: Zone 1, colloform pyrite (Py1) ± sphalerite ± chalcopyrite → Zone 2, euhedral pyrite (Py2) ± pyrrhotite + arsenopyrite ± colloform pyrite (Py1) → Zone 3, pyrrhotite + arsenopyrite. From zone 1 to zone 3, the sulphides were progressively phase-transformed, with the earlier Py1 being gradually consumed and converted into Py2, which finally became pyrrhotite. The gold deposition occurs in Zones 2 and 3 and forms two generations of gold grains, one group being completely enclosed within euhedral Py2 with low As contents (<0.1 wt%) and another group infilling fractures between arsenopyrite and pyrrhotite or occurring as inclusions within arsenopyrite with high As contents (0.4 to 1.4 wt%). The comparable S-isotope compositions of the ore sulfides to those of Mesozoic intermediate-felsic intrusions and the veining characteristics of colloform pyrite in the Tongling ore district suggest that Mesozoic magmatic-hydrothermal fluids, rather than Carboniferous sedimentary rocks as usually thought, provided the principal ore-forming materials. The gold precipitation in this study followed two continuous processes: recrystallisation and arsenopyrite sequestration; in the first process, Au is remobilised from the pyrite structure at higher temperatures up to recrystallisation of fine-grained, colloform morphologies into euhedral crystals and formation of Au-bearing metallic particles (Au1); with the ongoing recrystallisation more As is released and accumulated into the equilibrated fluids, forming As-rich pyrite or arsenopyrite and a second period of gold deposition (Au2). The continuous sulphide zonation texture and phase transformation, similar to Jiaochong, have been observed in other gold deposits in the MLYRB, and our gold enrichment processes may also give an explanation for the formation of these stratabound gold deposits.