China's Gold Imports Reach 173 Tons in June, Highest in Two Years

China's gold imports in June were recorded at approximately 173 tons, marking the highest level in over two years. This increase is attributed to rising investment demand due to falling international gold prices and a strengthening yuan. June's gold imports have risen for three consecutive months, reaching the highest level since March 2024. Low-price buying and banks expanding their inventories are driving gold demand, with banks offering gold savings products for individual customers. This year, China's gold ETFs have seen a net inflow of about 28 tons, while global gold ETFs continue to experience outflows. The People's Bank of China has implemented strict quotas to manage gold imports, and the introduction of a new import permit system has contributed to the increase in imports by actively utilizing existing quotas. Additionally, the maintenance of gold premiums within China has made it advantageous to source gold from overseas markets, further contributing to the expansion of imports.