China's Gold Imports Hit Record Pace Amid Economic Uncertainty
China's gold imports have reached a record-breaking pace this year, with over 1,141 tonnes already imported through August. This surpasses the country's total for all of last year and sets it up to potentially cross the 1,700-tonne mark for the first time ever by the end of 2026.
The surge in gold buying is being driven by domestic economic uncertainty, which has pushed investors towards bullion, as well as a strong yuan that has made overseas gold cheaper to import. Investment flows into Chinese gold ETFs have also increased, with a 44-tonne rise since January, representing an 18% jump from the same period last year.
China's central bank added 20 tonnes of gold in August, lifting its official reserves to 2,387 tonnes. The strong demand for gold in China is expected to help cushion price pullbacks despite dollar strength and rate pressure, potentially even shifting institutional allocation between gold and other assets like crypto, DeFi, and CEX venues.