China Imported 865 Tonnes of Gold in Six Months. Could the Next Gold Price Rally Be Building?

Fri July 31 2026

China imported nearly twice as much gold during the first half of 2026 as it did a year earlier, adding another piece of evidence that the world’s largest bullion market is using lower prices to accumulate physical metal. While no single data point determines where gold goes next, sustained Chinese demand could tighten the physical market and make future price rallies easier to sustain.

According to data from China’s General Administration of Customs, the country imported 864.95 tonnes of gold between January and June, an increase of 89.1% from the 457.39 tonnes imported during the same period last year. June alone accounted for 173.34 tonnes, the highest monthly total since March 2024 and the third consecutive monthly increase.

Those figures matter because they represent physical bullion entering China rather than speculative positions in futures markets. Combined with continued central bank purchases, expanding retail investment and new bullion infrastructure across Greater China, they point to a market increasingly driven by long-term ownership rather than short-term trading.

China Imported Almost a Quarter of Annual Global Mine Production

The scale of China’s buying becomes clearer when viewed in a global context.

Worldwide gold mine production typically totals around 3,500 to 3,700 tonnes per year. China’s imports of nearly 865 tonnes in just six months therefore represent roughly one-quarter of annual global mine output.

Not all of that gold remains permanently off the market. Some bullion is refined, traded or later re-exported. Even so, imports of this magnitude demonstrate the scale of physical demand flowing into the world’s largest precious metals market.

June’s increase was driven by several factors. International gold prices fell during the first half of the year, while the appreciation of the Chinese yuan made imported bullion cheaper for domestic buyers. Commercial banks also increased purchases to replenish inventories and meet commitments under retail gold accumulation plans.

Rather than discouraging demand, lower prices appear to have encouraged investors to buy more physical gold.

Three Different Sources of Demand Are Supporting the Market

One of the most significant aspects of China’s gold market today is that demand is no longer coming from a single group of buyers.

Retail investors continue purchasing bullion through gold accumulation plans offered by commercial banks, allowing savers to build holdings gradually over time. Those products have become one of the primary ways Chinese households gain exposure to physical gold.

Commercial banks are simultaneously increasing imports to support those programmes and replenish inventories.

The People’s Bank of China is also continuing to add gold to its official reserves.

According to figures compiled by the World Gold Council from China’s State Administration of Foreign Exchange, the central bank purchased 15 tonnes of gold during June, its largest monthly acquisition since October 2023. That brought first-half purchases to 40 tonnes and extended the central bank’s buying streak to 20 consecutive months, the longest on record.

Official reserves now stand at approximately 2,346 tonnes, although gold still represents only about 8% of China’s reported foreign exchange reserves, leaving considerable room for further diversification should policymakers choose to continue increasing their allocation.

Physical Demand Is Becoming More Important

The latest customs figures follow several developments that suggest China’s gold market is becoming increasingly focused on physical ownership.

Earlier this month, major Chinese banks suspended retail participation in Shanghai Gold Exchange trading, effectively reducing access to paper gold products for many individual investors.

Source: https://financefeeds.com/