China’s appetite for gold has accelerated sharply in 2026, with imports reaching record levels as investors, financial institutions and the official sector continue to increase their exposure to the metal.
According to China’s customs data, the country imported more than 1,100 tonnes of gold during the first eight months of 2026, putting total imports close to the 1,200-tonne mark well before the end of the year. The value of these imports reached approximately US$158.8 billion.
The scale of the increase is particularly striking when compared with 2025. China imported around 886 tonnes of gold during the whole of last year, valued at approximately US$96.5 billion. In other words, the volume imported in just eight months of 2026 has already exceeded the total for the previous year.
Strong Investment Demand
One of the major forces behind the increase has been strong demand for gold as an investment.
During the first half of 2026, Chinese demand for gold bars and coins increased 31% year-on-year, according to the World Gold Council. Investment demand — including bars, coins and gold ETFs — represented about 66% of China’s total gold demand during the period.
This is significant because China’s gold market has traditionally been strongly associated with jewellery consumption. In 2026, however, investment demand has become increasingly important.
The trend has developed against a backdrop of uncertainty in other domestic investment markets. China’s prolonged property downturn, relatively weak returns from some financial assets and low government bond yields have encouraged some households and institutions to look towards alternative stores of value.
A stronger Chinese yuan has also made internationally priced gold relatively cheaper for domestic buyers, helping to support imports.
Local Gold Premiums Encourage Imports
Another important factor is the relationship between gold prices inside China and international markets.
When gold trades at a premium in Shanghai compared with global benchmarks, importing bullion into China can become more attractive. Strong investment demand has helped maintain such premiums at various points during 2026, providing an incentive for banks and authorised importers to bring additional metal into the country.
Imports were already exceptionally strong during the first half of the year. World Gold Council data showed 764 tonnes of net gold imports during the first six months of 2026, an increase of 138% year-on-year. June alone recorded 152 tonnes of net imports, the highest monthly level since March 2024.
July remained strong at approximately 118 tonnes, despite declining from June. Customs data subsequently showed another sharp increase in August, pushing cumulative imports for the year above 1,100 tonnes.
The PBoC Is Also Accumulating Gold
China’s rising imports have occurred alongside continued gold purchases by the People’s Bank of China (PBoC).
The central bank reported adding 20.2 tonnes of gold to its reserves in August, its largest monthly increase since October 2023. This extended China’s reported gold-buying streak to 22 consecutive months.
By the end of August, China’s official gold reserves had reached approximately 2,387 tonnes, representing around 9% of the country’s total foreign exchange reserves.
It is important, however, to distinguish central-bank purchases from China’s overall gold imports. Imported gold can flow to commercial banks, investors, jewellery manufacturers and other participants in the domestic market; the import figures should not be interpreted as PBoC purchases.
Jewellery Tells a Different Story
Not every part of China’s gold market is booming.
High gold prices have weighed heavily on jewellery demand. During the first half of 2026, Chinese jewellery demand fell approximately 30% year-on-year, even as demand for bars and coins increased.
This divergence illustrates an important change within the market: Chinese consumers may be buying less gold for adornment while allocating more towards gold as an investment or store of value.
Why China’s Gold Imports Matter
China is one of the world’s largest gold markets, so major changes in Chinese demand can have implications beyond its borders.
More than 1,100 tonnes of imports in eight months represents a substantial movement of physical bullion into the country. If investment demand remains strong, China’s import requirements could continue to provide an important source of support for the international physical gold market.
At the same time, gold prices will continue to be influenced by many other forces, including interest rates, inflation expectations, the U.S. dollar, central-bank policy, geopolitical developments and global investment flows.
China’s record imports therefore do not determine where gold prices will go next. But they do highlight something significant beneath the headline price movements: one of the world’s largest gold markets is absorbing physical metal at an unusually rapid pace.
Disclaimer: All content is provided for informational and educational purposes only. Precious metals investments involve financial risk. Readers should conduct their own research before making any investment decisions.
