(Mike Maharrey, Money Metals News Service) So far this year, Chinese gold imports are at the highest level since at least 2017.
China ranks as the world’s largest gold market.
Through the first eight months of 2026, China spent $158.8 billion to import more than 1,100 tonnes of gold, according to China’s General Administration of Customs.
That’s already far above the total imported in 2025.
Chinese customs data date back to 2017.
Jinrui Futures Co. analyst Zijie Wu said strong investment demand has kept the gold price at a slight premium in China, incentivizing imports.
“The yuan has remained strong since the beginning of this year, creating favorable conditions for gold imports and enabling regulators to grant more generous approval quotas.”
Imports also got a boost in June when the government instituted a new import licensing regime that encouraged banks to use up existing import quotas.
Saxo Bank head of commodity strategies Ole Hansen said Chinese investors are accumulating gold as an alternative to traditional investments in property and stocks, noting that the opportunity cost for holding gold is lower in China than in the West.
“While investors in the rest of the world are facing some headwinds from rising interest rates and surging bond yields, the opposite is the case in China where short- and long-term yields are significantly lower, reducing the opportunity cost of holding bullion.”
Notably, China’s U.S. Treasury holdings fell to $618 billion in July. That was the lowest level since August 2008.
However, there are signs physical demand may be cooling.
Gold withdrawals from the Shanghai Gold Exchange (SGE) fell 22 percent month-on-month in August to 62 tonnes. According to the World Gold Council, this reflects “cooling momentum in bullion investment and still tepid gold jewelry demand overall.”
On the other hand, gold ETF investment surged last month, with Chinese ETFs accumulating 11 additional tonnes of gold in August.
ETFs are a convenient way for investors to play the gold market, but owning ETF shares is not the same as holding physical gold.
World Gold Council analysts say Chinese gold investment will likely hinge on the price trend as we move into the final months of 2026. However, “Falling yields and equity market uncertainties may provide support.”
“Meanwhile, gold jewelry demand is likely to receive a seasonal boost as, historically, retailers ramp up their restocking ahead of the peak season in Q4.”
Gold Mountain Asset Management managing director Lisa Liu told the Financial Times that despite the recent cooling in Chinese demand, she remains bullish long-term, saying the rotation into gold “is not a short-term trade.”
“It’s a multiyear repositioning of household and official assets. The scale and persistence of Chinese buying is now a core driver of global gold prices, and we expect it to hold as long as uncertainty over growth and geopolitics remains.”
A ramp-up in official Chinese central bank buying has also boosted the broader Chinese gold market.
The People’s Bank of China official added another 20.2 tonnes of gold to its reserves in August. It was the 23rd straight month of reported gold buying, raising official Chinese reserves to 2,386 tonnes.
So far in 2026, the Chinese central bank has increased its official gold holdings by around 80 tonnes.
Keep in mind that China is among the central banks likely to hold significantly more gold than they publicly disclose. As Jan Nieuwenhuijs has reported, the People’s Bank of China is secretly buying large amounts of gold off the books. According to data parsed by the renowned Money Metals researcher, the Chinese central bank currently sits on more than 5,000 tonnes of monetary gold – more than TWICE the publicly admitted amount.
The mainstream has picked up on this. In a note published earlier this month, Goldman Sachs estimated the PBoC bought 35 tonnes of gold in July. It officially reported a 20-tonne increase in its gold reserves.
Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
