China's Gold Imports Soar to Two-Year High on Price Dip
Chinese gold imports surged to a two-year high in June as lower prices sparked a resurgence in demand.
The country's gold market, which ranks as the world's largest, saw a significant increase in imports last month with 173 tonnes of gold being brought into China. This marks the highest monthly total since March 2024 and follows previous months where imports stood at 151 tonnes in May and 157 tonnes in April.
According to analysts, investors buying the price dip were an important driver of recent demand, while Chinese banks were motivated to use up import quotas and stock up on bullion. Commercial banks need to build up their inventories to provide physical backing for retail gold sales and accumulation plans, as well as preserving some safety reserve.
The international gold price dipped by 7 percent in the first half of this year, while the price was down even more, 10 percent, in renminbi terms, reflecting yuan strength. This made it cheaper for banks and jewelry producers to source gold from the international market, further boosting demand.