China's monthly gold imports surged in May 2026, reaching their highest level in more than two years. Customs data released on a Saturday indicated that imports were approximately 163 tons, marking the largest volume since March 2024. For the first five months of 2026, total imports amounted to about 692 tons, representing a significant increase of approximately 76% compared to the same period a year earlier.
This surge in imports comes despite a significant retreat in global gold prices, which have fallen by about a quarter from the record highs seen in January. The price decline has been attributed to global inflation fears and the ongoing conflict in the Middle East. However, the appetite for bullion among Chinese buyers remained strong, driven by demand for physical bullion bars and metal linked to gold accumulation plans. Song Jiangzhen, a researcher at the Guangzhou Southern Gold Market Academy, highlighted these as key drivers, noting that accumulation plans are low-barrier products allowing incremental gold purchases.
While strong buying from Chinese consumers was a major catalyst for the gold market frenzy in January, domestic demand has moderated slightly since then, but without a major downturn. China implemented a new import licensing regime for gold from June 1, with some banks facing fewer restrictions. This change might have prompted certain banks to utilize their existing quotas before the new system took effect, potentially contributing to the May surge.
