Chinese Gold Imports Rose to Two-Year High in June

Mike Maharrey

Chinese gold imports climbed to a two-year high in June as lower prices helped revive demand, underscoring how price moves can quickly affect buying across banks, wholesalers, and investors in the world’s largest gold market.

According to the latest customs data, China imported 173 tonnes of gold last month, the highest monthly total since March 2024. That compares with 151 tonnes in May and 157 tonnes in April.

The international gold price fell 7 percent in the first half of the year. In renminbi terms, the decline was even larger at 10 percent, reflecting the strength of the yuan.

Jinrui Futures Company analyst Zijie Wu told Bloomberg that investors buying the dip in prices were “an important driver of recent demand.” He also said Chinese banks were motivated to use up import quotas and build stocks of bullion.

"Commercial banks need to build up their inventories to provide the physical backing for retail bullion sales and gold accumulation plans, as well as preserving some safety reserve for when demand spikes."

A new import licensing regime took effect on June 1, encouraging importers to use existing quotas before the new rules took hold.

A persistent domestic premium for gold in China has also made it cheaper for banks and jewelry producers to source the metal from the international market.

A tug of war in Chinese gold demand

Chinese gold demand remains divided, with resilient investor buying on one side and a weak jewelry sector on the other.

Wholesale gold demand rebounded in June, as withdrawals from the Shanghai Gold Exchange (SGE) increased 36 percent month over month to 87 tonnes.

According to the World Gold Council, the monthly recovery was mainly driven by opportunistic restocking across the supply chain as prices fell, along with healthy coin and bar investment.

At the same time, weakness in the jewelry sector continues to weigh on overall Chinese gold demand. That split matters because jewelry manufacturing, investment buying, and bank inventory management do not always move in the same direction, so a pickup in imports does not automatically mean broad-based end demand has fully recovered.

In the first half of 2026, wholesalers withdrew 598 tonnes of gold from the SGE. That was down 12 percent from the same period a year earlier and 27 percent below the 10-year average.

The World Gold Council said, "While bullion demand remained robust, sustained weakness in jewelry consumption made manufacturers and retailers cautious about replenishing, weighing on overall wholesale gold demand."

Chinese investors have traditionally favored physical bullion, but interest in gold ETFs has grown in recent years.

Even with a large outflow of gold in June, Chinese ETFs added 29 tonnes of metal in the first half of the year, the second-strongest start to a year on record. Total assets under management rose 1 percent.

The World Gold Council described Chinese ETF demand as “robust amid growing geopolitical and economic uncertainties.” It also said, “Institutional investor participation in Chinese gold ETFs has also risen, supporting demand for these products.”

At the end of June, total assets under management by Chinese ETFs stood at 277 tonnes, valued at ¥243 billion ($36 billion).

ETFs offer investors a convenient way to gain exposure to gold, although owning ETF shares is not the same as holding physical gold.

Looking ahead, lower gold prices could continue to support buying across parts of the market, while the jewelry sector remains a key area to watch for signs of a broader demand recovery.