China’s gold imports surged to a two-year high in June, as a slide in international prices and a stronger yuan unleashed a wave of bargain hunting in the world’s largest bullion market.
Overseas purchases rose for a third straight month to roughly 173 tonnes, the highest since March 2024, according to the latest customs data. The jump was fueled by cheaper gold and favorable exchange rates, which encouraged investors to buy the dip while commercial banks raced to use up import quotas and replenish inventories to meet retail commitments.
“Investor dip-buying is a major driver of recent demand,” said Zijie Wu, an analyst at Jinrui Futures Co. “Commercial banks need to build inventory to provide physical backing for retail bullion sales and gold accumulation plans, while keeping a safety buffer for sudden spikes in demand.”
Gold accumulation plans, offered by many Chinese banks, allow individuals to buy gold in small increments and serve as one of the main channels for retail investors to gain exposure to the metal. Meanwhile, bullion-backed exchange-traded funds also saw net inflows of around 28 tonnes so far this year, according to Shanghai Gold Exchange data.
Chinese banks import gold under strict quotas distributed at irregular intervals by the People’s Bank of China. The June import tally was likely also boosted by a new licensing regime that took effect on June 1, which incentivized banks to exhaust existing quotas. Wu added that some banks may have booked shipments before June, but the volumes did not show up in the data until later due to the time required for financing, transportation and customs procedures.
For much of the first half, domestic gold prices maintained a premium over international benchmarks, making it cheaper for banks to source bullion overseas. The rush was already visible in May, when imports hit about 163 tonnes — also a multi-year high — with gold prices still trading roughly 25% below their early 2026 peak. Through May, total gold imports had reached approximately 692 tonnes, a 76% jump from the same period in 2025.
Ray Jia, China research head at the World Gold Council, said earlier that a positive local price spread had been a key factor encouraging imports, and that seasonal restocking patterns pointed to stability in the jewelry sector following a stretch of subdued buying.
