China's gold imports hit record high with $158.8 billion spent in first eight months

Date: September 24, 2026 Source: Zhongcai Wang / Reference News

China has spent a record amount on gold imports this year, surpassing 1,000 metric tons, according to reports. In the first eight months of 2026, the world’s second-largest economy spent $158.8 billion on gold, compared to $96.5 billion spent on 886 tons of gold in 2025.

Analysts say the scale and persistence of China’s gold purchases have become a core driver of global gold prices. This trend is expected to continue as long as economic growth and geopolitical uncertainties persist.

Key Highlights

• Record spending: China spent $158.8 billion on gold imports in the first eight months of 2026, importing over 1,000 tons.
• Comparison with 2025: In 2025, China spent $96.5 billion to purchase 886 tons of gold.
• Price surge: Gold prices surged from approximately $2,625 per troy ounce in early 2025 to a peak of $5,595 in January 2026. China slowed its gold purchases during this rally but has since resumed strong import activity.
• Global production leader: According to the World Gold Council, China is the world’s largest gold producer, with output of 384 tons last year.

Drivers of Demand

Both the central bank and domestic investors are increasing gold purchases as part of broader asset diversification efforts.

• Declining U.S. Treasury holdings: In July 2026, China’s holdings of U.S. Treasuries fell to $618 billion, the lowest level in 18 years.
• Structural reallocation: Liu Sha, Managing Director of Zijin Mining’s Jinshan Asset Management, said: “Both central banks and retail investors are diversifying reserves and savings as part of a broader long-term wealth preservation strategy. This is not short-term trading, but a multi-year structural reallocation of household and official assets.”

Gold as a Diversification Tool

As government bonds no longer move inversely to equities, gold is becoming an increasingly important asset for global investors seeking diversification.

Christopher Hamilton, Head of Asia-Pacific Client Solutions at Invesco, noted that gold’s price behavior has diverged from past patterns, where rising real yields typically suppressed gold prices. “Investors are in an environment where they want to own physical assets,” he said.

Hamilton added that institutional buying remains the most important driver of gold prices.

Global Context

As China increases its gold holdings, countries are increasingly demanding that their gold reserves be repatriated and stored closer to their actual owners. Recently, the Dutch government moved part of its gold reserves from New York to London.

Source: Reference News