Gold Torn Between Fed's Hawkish Stance and China's Insatiable Appetite

Gold traders are facing conflicting forces as the Federal Reserve's less accommodative stance pushes Treasury yields to multi-year highs, and China's gold imports have already exceeded a full year's worth with four months left on the calendar.

The tug-of-war has led spot gold trading to $4,148.77 an ounce, down 0.6% on the day, and roughly 26% below its 52-week high of $5,598.58.

Aakash Doshi of State Street Investment Management believes that despite the current turbulence, structural demand drivers will remain intact and has a target of up to $5,000 per troy ounce in six months or by the second quarter of 2027.

China's gold imports have surpassed 1,000 tons by the end of August, already exceeding the total for all of 2025, according to Bloomberg. The People's Bank of China added 20.2 tons in August, its 22nd consecutive monthly purchase.