DBT Bureau
Pune, 6 August 2026
China’s gold imports jumped 89.1% year-on-year to 864.95 tonnes during the first half of 2026, supported by lower international bullion prices, a stronger yuan, and robust investment demand. Commercial banks increased imports to replenish inventories and meet retail gold accumulation plans, while investors took advantage of cheaper prices. Although Chinese gold ETFs witnessed record outflows in June, first-half inflows remained strong, reflecting sustained institutional and retail interest. Meanwhile, the People’s Bank of China (PBoC) extended its gold-buying streak to 20 consecutive months, reinforcing central bank demand despite weak jewellery consumption and cautious inventory replenishment across the domestic market.
Key Highlights
* China’s gold imports surged 89.1% YoY to 864.95 tonnes during January–June 2026.
* Lower gold prices and a stronger yuan encouraged higher bullion imports and investment demand.
* Chinese gold ETFs recorded strong first-half inflows despite record June outflows.
* The PBoC purchased 40 tonnes in H1, extending its gold-buying streak to 20 months.
* Weak jewellery demand persisted, but investment demand and central bank buying remained strong.
Gold prices remained supported by resilient physical demand from China despite a temporary correction in international bullion prices during the first half of 2026. While global gold prices declined by around 8% and yuan-denominated prices fell 10%, lower valuations encouraged Chinese investors and commercial banks to increase bullion purchases. The combination of a stronger yuan and attractive prices boosted import activity, reinforcing China’s position as one of the world’s largest gold consumers.
According to China’s General Administration of Customs, gold imports climbed 89.1% year-on-year to 864.95 tonnes during January–June 2026 from 457.39 tonnes a year earlier. Imports increased steadily throughout the period, reaching 173.34 tonnes in June, the highest monthly level since March 2024. Commercial banks expanded imports to replenish inventories and support retail gold accumulation plans, while investors continued allocating funds to bullion amid ongoing geopolitical and economic uncertainty.
Investment demand also remained robust across financial markets. The World Gold Council (WGC) reported that Chinese gold-backed ETFs attracted about 40 billion yuan during the first half, despite experiencing record outflows in June as improving equity market sentiment prompted some profit booking. Trading activity on the Shanghai Futures Exchange remained above its five-year average, highlighting sustained hedging demand. Meanwhile, gold withdrawals from the Shanghai Gold Exchange recovered during June as supply chains replenished inventories. Adding further support, the People’s Bank of China purchased 40 tonnes of gold during the first half, including 15 tonnes in June, extending its record gold-buying streak to 20 consecutive months. However, jewellery consumption remained subdued, limiting broader physical demand despite healthy investment interest.
Robust investment demand, rising imports, and continued central bank purchases are expected to underpin China’s gold market, although weak jewellery consumption may continue to cap overall physical demand.
Source: Kedia Stocks & Commodities Research Pvt. Ltd.
