Chinese gold imports hit an 11-month high in April as prices continued to surge to record levels.
According to the latest customs data reported by Bloomberg, gold imports reached 127.5 tonnes, a 73 percent increase from the prior month.
This comes in the wake of the People's Bank of China raising gold import quotas to meet surging demand.
China ranks as the world’s largest gold market.
Over the past four months, the price of gold in yuan terms has climbed by 24 percent, the strongest January to April performance on record. The Shanghai Benchmark Gold Price rose 6.9 percent in April alone. It was the fifth consecutive monthly gain.
The Shanghai price premium averaged $37 in April. That was up significantly from a $2 average in March, reflecting growing demand.
The Shanghai Gold Exchange (SGE) reported gold withdrawals totalling 153 tonnes. This was up 27 percent month-on-month and 17 percent year-on-year.
Withdrawals of gold from the SGE represent wholesale demand.
Investment demand has been the primary driver for overall Chinese gold demand in recent months, even as price pressure has created headwinds for the jewelry market. According to the World Gold Council, "Continued robustness in bar and coin sales amid strong investor buying: gold remains a top-performing asset in China as US-China trade tensions intensified."
Meanwhile, Chinese gold-backed ETFs reported record inflows of gold in April. Holding surged by 65 tonnes, boosting total Chinese ETF gold holdings to 203 tonnes.
During the first four months of 2025, Chinese gold ETFs’ total assets under management jumped by 125 percent.
Chinese interest in gold-backed funds is a relatively new phenomenon. Physical gold has historically been the primary means of investment in the country, and even with the surging interest in ETFs, Chinese investors continue to gobble up physical metal. Gold bar and coin sales surged 12 percent to 124 tonnes in the first quarter.
China accounted for 38 percent of global Q1 bar and coin investment.
While physical gold investment surged in China (and Asia more broadly), it declined in the U.S., with gold coin and bar sales falling to the lowest level in five years.
A Chinese analyst with Jinrui Futures told Bloomberg that Chinese investors favor gold as a safe-haven asset and a long-term portfolio diversifier, especially when equities and bonds come under pressure.
“I expect investment and hedging demand in China to remain resilient as policy flip-flops in the U.S. create more uncertainty."
Another analyst said ongoing de-dollarization is also driving gold investment. This could accelerate if the trade war continues to heat up.
“China may be encouraged to continue moving forward more actively to diversify its reserves away from the U.S. dollar and treasuries given that it is at the epicenter of the trade war. The desire to reduce exposure to the US may see China buying more gold to bolster its reserve.”
Metals market analyst Jesse Colombo points out that Chinese demand has been a big part of this gold rally from the beginning.
"Since last fall, I’ve been advancing a theory that China’s aggressive futures traders—who were behind gold’s initial $400 breakout one year ago that launched this bull market—would soon reassert themselves and help drive gold from around $2,500 to $3,000 and beyond.
"Sure enough, I’m pleased to report that my thesis is unfolding exactly as anticipated—evidenced by a surge in gold futures trading volume on the Shanghai Futures Exchange (SHFE), a renewed rise in Chinese domestic gold premiums over international spot prices, and gold now entering its parabolic, nearly vertical phase."
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