China’s gold imports surged 73% in April to 127.5 tonnes, reaching an 11-month high as Beijing accelerates efforts to reduce reliance on the US dollar amid mounting trade tensions.
The April figure represents a dramatic reversal from earlier this year, when imports had fallen to multi-year lows. January saw only 17 tonnes imported — the weakest month since February 2021 — while February managed just 76 tonnes.
The surge appears policy-driven rather than market-led. Despite record-high gold prices that typically dampen demand, China’s central bank allocated new import quotas to commercial banks in April to meet what officials described as investment risk aversion needs.
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In May, the People’s Bank of China took additional steps, approving foreign exchange purchases by commercial banks to fund gold imports under expanded quotas. The move signals government commitment to gold accumulation regardless of price levels.
China’s central bank has been steadily building reserves, adding gold for six consecutive months through April. The bank reported adding 12.8 tonnes in the first quarter alone, bringing China’s official holdings to 2,292 tonnes — representing 5.9% of total foreign reserves.
The import acceleration coincides with escalating US-China trade tensions and growing concerns about dollar weaponization. Market observers characterize China’s gold accumulation as part of an “anti-dollar trade,” reflecting Beijing’s strategy to reduce dependence on the US financial system.
Private investment demand has also surged. Chinese gold exchange-traded funds attracted record inflows of 16.7 billion yuan ($2.3 billion) in the first quarter, pushing total assets under management to 101 billion yuan ($14 billion).
The April surge wasn’t limited to gold. Platinum imports also hit a one-year high at 11.5 tonnes, suggesting a broader appetite for precious metals as alternative stores of value.
Related: China’s 25,000 Ton Gold Stash: Preparing to Kill the Dollar? | Craig Hemke
For context, China imported 1,225 tonnes in 2024, a 14% decline from 2023 levels. If April’s pace continues, 2025 imports could significantly exceed recent years, potentially returning to the pre-COVID five-year average of 1,460 tonnes.
The combination of central bank purchases, policy support for commercial imports, and strong private investment demand suggests the trend will likely continue, and it will likely reshape global gold markets.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
