China's Gold Imports Hit a Fresh Two-Year High as Lower Global Prices Boost Demand

China's gold imports climbed to their highest level in more than two years in June, driven by a decline in global bullion prices that encouraged buying in the world's largest physical gold market.

According to the latest customs data, gold imports reached approximately 173 tonnes in June, marking the third consecutive monthly increase and rising from around 163 tonnes in May. The figure represents the highest monthly import volume since March 2024.

The increase was supported by lower international gold prices and a stronger Chinese yuan, prompting investors to buy on price dips. Chinese banks also took advantage of their import quotas by building up bullion inventories to meet growing retail demand.

"Investors buying the dip is an important driver of recent demand," Zijie Wu, an analyst at Jinrui Futures, told Bloomberg. He added that commercial banks need to expand their inventories to provide the physical backing for retail bullion sales and gold accumulation plans, while maintaining adequate reserves to meet potential spikes in demand.

Gold accumulation plans offered by Chinese banks allow consumers to purchase small amounts of gold on a regular basis and have become one of the most popular investment channels for retail investors seeking exposure to the precious metal.

Gold imports into China are regulated through a strict quota system administered by the People's Bank of China (PBOC), with licensed banks receiving import quotas on an irregular basis. The implementation of a new import licensing regime on 1 June also encouraged banks to fully utilise their existing quotas before the new framework took effect.

China's gold imports had already reached a two-year high in May, when international gold prices remained roughly 25% below the record highs recorded in early 2026.

Total gold imports during the first five months of the year reached approximately 692 tonnes, representing a 76% increase compared with the same period in 2025, according to Chinese customs data.

Song Jiangzhen, a researcher at the Guangzhou Southern Gold Market Academy, said that strong demand for gold bars, together with growing participation in consumer gold accumulation plans, had been among the main factors behind the recent surge in imports.

Meanwhile, Ray Jia, Head of Research for China at the World Gold Council (WGC), noted that China's net gold imports totalled 157 tonnes in April, up 10% month-on-month and 40% year-on-year, marking the strongest monthly performance since March 2024. He added that the persistent premium of domestic Chinese gold prices over international prices remained a key factor encouraging imports.

Looking ahead, Jia expects relative stability in China's jewellery sector as manufacturers replenish inventories following several months of subdued consumer purchases, a trend that could continue to support physical gold demand in the Chinese market.