China's Gold Imports Hit 163 Tonnes in May, Highest in Over Two Years
Alina Collins
China imported roughly 163 tonnes of gold in May, the most since March 2024; despite spot prices sitting about a quarter below their January record, the world's largest gold buyer kept buying — cumulative imports for the first five months surged roughly 76% year-on-year.
What does 163 tonnes tell us?
May imports reached roughly 163 tonnes, an over-two-year high; the January-to-May total came to about 692 tonnes, up around 76% year-on-year.
This means → even with gold prices down about a quarter from their January peak, China's physical appetite has not meaningfully shrunk.
In plain terms = prices fell, yet buying accelerated — a classic "buy the dip" pattern.
Who is buying, and how?
Two main drivers: physical gold-bar demand and products tied to gold accumulation plans.
Gold accumulation plans — low-threshold products that let investors buy gold in small, regular instalments — have spread rapidly among Chinese retail investors in recent years.
This means → gold demand is shifting from wealthy investors to mass retail; lower entry barriers are directly amplifying import volumes.
Why did imports spike specifically in May?
China launched a new import-licence regime for gold on June 1; some banks face fewer restrictions under the new rules.
Researcher Song Jiangzhen noted that ahead of the switchover, some banks likely exhausted their old quotas early, creating a concentrated import surge in May.
In plain terms = the old permits were about to expire, so banks rushed to use them up — a "dash through the door before it closes" effect.
Gold prices dropped — why is demand still holding?
Spot gold has pulled back roughly a quarter from its January record high, weighed down by global inflation fears tied to Middle East tensions.
During the January rally, strong Chinese buying was a key catalyst pushing prices higher; demand has cooled since, but has not collapsed.
This reflects an entrenched preference among Chinese investors for gold — the price pullback is being treated as "a better entry point," not a reason to exit.
What to watch in the second half?
With the new licence regime now in effect, China's gold-import channels face structural change.
Fewer restrictions on some banks should, in theory, smooth the import pipeline; but once the old-quota rush fades, monthly figures may dip short-term.
This means → the key question for the second half is not "will China keep buying?" but whether the new regime can turn May's elevated imports into a new normal.
Content is for reference only, not financial advice.