In June, gold imports to China surged to a two-year high, reaching 173 tons. According to Bloomberg, a sharp decline in global prices has sparked frenzy-level demand in the world’s largest precious metals market, with overseas purchases increasing for the third consecutive month and setting a record since March 2024.

Buying interest has been fueled by cheaper bullion and a stronger yuan. Commercial banks are urgently replenishing their inventories to maximize their import quotas and ensure that retail clients have access to physical metal. As Zijie Wu, an analyst at Jinrui Futures Co., explains, the strategy of buying the dip has become the primary market driver. Banks need to maintain real reserves for accumulation programs, through which ordinary citizens invest in gold in small increments. Alternative investment vehicles are also hitting records: according to the Shanghai Gold Exchange, net inflows into gold-backed ETFs have totaled about 28 tons since the beginning of the year.

An additional catalyst for the surge in imports has been the new licensing regime implemented by the People’s Bank of China on June 1. The regulator’s strict oversight has effectively compelled financial institutions to quickly exhaust available import limits. Experts note that some of the volumes may have been purchased before June, but due to logistics, financing, and customs delays, the metal was only reflected in official statistics later. Furthermore, importing gold is currently more advantageous for Chinese banks, as a price premium persisted in the domestic market for much of the first half of the year.