China gold imports hit record pace as bullion demand strengthens

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China gold imports hit record pace

Highlights

China imported more than 1,000 tons of gold through August.
Chinese gold ETFs added about 44 tons this year.
Strong investment demand is supporting domestic bullion purchases.

Imports through August reached their highest level for the period since comparable customs records began in 2017, according to Bloomberg. Domestic gold prices have remained slightly above international benchmarks, creating an incentive for banks and other authorized buyers to bring more bullion into China.

Investors add gold exposure

Chinese demand strengthened after gold retreated from its January record, giving investors an opportunity to increase holdings at lower prices. The yuan’s appreciation has also made dollar-denominated bullion less expensive for Chinese buyers.

Exchange-traded funds offer another measure of that demand. Chinese gold ETFs added about 44 tons through August, lifting their holdings by 18% from the beginning of the year, according to Shanghai Gold Exchange data cited in the report. Global gold ETF holdings, by comparison, were broadly unchanged over the same period.

Regulatory changes may have contributed to the import surge. A new licensing system introduced in June gave banks an incentive to use existing import quotas allocated by the People’s Bank of China before moving to the new framework.

Central bank buying supports demand

The PBOC has also continued accumulating bullion, reinforcing interest among domestic investors. The central bank recorded its largest monthly gold purchase since 2023 in August and has now maintained its buying streak for nearly two years.

Gold remains particularly important in China because households have fewer mainstream investment alternatives than investors in many developed markets. Uncertainty surrounding the economy has further encouraged demand for assets viewed as stores of value.

The combination of private investment and central bank purchases makes China an increasingly important source of physical demand. More than 1,000 tons of imports in eight months also put 2026 purchases ahead of the entire previous year well before the final quarter.

What it means for the gold market

Heavy Chinese buying can provide an important source of support for bullion, particularly when international prices retreat enough to attract physical buyers. The premium in China suggests domestic demand remains firm even after this year’s substantial imports.

Still, the latest market move shows that strong Chinese demand does not prevent shorter-term price declines. Spot gold was trading at $4,320.40 per ounce, down $23.15, or 0.53%, according to the latest price shown in the provided market data. The combination of softer prices and sustained Chinese demand could keep physical buying in focus as traders assess whether imports remain elevated through the rest of the year.

As we previously reported, rising demand for physical gold from wealthy investors is pushing bullion storage providers in London, Switzerland, and Singapore to expand vault capacity.

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