Chinese Gold Imports Spike to 2-Year High Amid Price Dip
Chinese gold imports surged to a two-year high in June as lower prices triggered increased demand. According to customs data, China imported 173 tonnes of gold last month, the highest monthly total since March 2024. This follows gold imports of 151 tonnes in May and 157 tonnes in April.
The international gold price dipped by 7 percent in H1, while the price was down even more, 10 percent, in renminbi terms due to yuan strength.
Jinrui Futures Company analyst Zijie Wu attributed recent demand to investors buying the price dip and Chinese banks seeking to use up import quotas and stockpile gold. 'Commercial banks need to build up their inventories to provide physical backing for retail bullion sales and gold accumulation plans, as well as preserving some safety reserve for when demand spikes.'
Chinese gold demand has been bifurcated between resilient investor buying and a struggling jewelry sector. Wholesale gold demand rebounded in June with gold withdrawals from the Shanghai Gold Exchange rising 36 percent month-on-month to 87 tonnes.