China's Gold Imports Soar to Highest Level Since 2017

Chinese gold imports have reached their highest level since at least 2017, according to data from China's General Administration of Customs. Through the first eight months of 2026, China spent $158.8 billion to import more than 1,100 tonnes of gold.

This is a significant increase compared to last year and reflects strong investment demand in China, which has kept the gold price at a slight premium in the country. Analyst Zijie Wu from Jinrui Futures Co. noted that the yuan's strength since January this year created favorable conditions for gold imports and enabled regulators to grant more generous approval quotas.

Additionally, in June, the government introduced a new import licensing regime that encouraged banks to use up existing import quotas, further boosting imports. Saxo Bank's head of commodity strategies Ole Hansen attributed Chinese investors' accumulation of gold to its appeal as an alternative to traditional investments in property and stocks, with lower opportunity costs compared to Western markets.

However, there are signs that physical demand may be cooling, with gold withdrawals from the Shanghai Gold Exchange falling 22% month-on-month in August. Despite this, gold ETF investment surged last month, with Chinese ETFs accumulating 11 additional tonnes of gold.