China's Gold Appetite Hits Record High Amid Interest Rate Headwinds
Chinese gold imports have surpassed 1,000 tonnes for the year, reaching a high of 1,141 tonnes by August. This is the highest level since 2017 and exceeds the total amount imported in all of 2025.
The strong demand for gold is driven by lower prices and a robust yuan, making it an attractive investment for Chinese investors. Both individual investors and the People's Bank of China (PBoC) are major buyers, with the central bank purchasing its largest amount since 2023 in August alone.
Gold ETFs added 44 tonnes of gold in August, a significant increase from the previous year. Analysts say that this demand is supporting a strong gold price despite headwinds from higher interest rates and oil prices.
Saxo Bank's Ole Hansen notes that historically, the gold price has fallen when real yields on US 10-year Treasuries rise. However, this relationship appears to have broken down, with gold ETFs continuing to recover even as real yields reach their highest level in over 20 years.