China's Gold Buying Surges Amid Silver Price Pressure
China's central bank continues to accumulate physical gold, adding another 20.2 tonnes in August, marking its largest monthly purchase since October 2023.
The People's Bank of China has now bought gold for 22 consecutive months, with reported holdings reaching 2,387 tonnes.
Separately, Heraeus estimates that China imported a record 142 tonnes of gold in August, bringing the total to 1,141 tonnes for the first eight months of 2026.
This pace suggests China could import around 1,700 tonnes by year's end, marking its strongest annual total this decade.
Despite historically high prices, investment demand remains strong, while the jewelry sector continues to struggle with weak consumer demand.
Australia's gold production also reached a new high in the 2025-26 fiscal year, producing 303 tonnes.
In contrast, India faces challenges due to below-average rainfall and weaker farm income, which may restrain rural households' purchases during its key festival and wedding season.
Silver is testing its $60 threshold, with Heraeus viewing this level as a critical dividing point; if it breaks through, the metal could face additional weakness.