English
China Expands Gold Import Quotas Amid Rising Demand and Global Tensions
In a move that reflects its response to surging demand for gold among both retail and institutional investors, the People’s Bank of China has allocated new gold import quotas to several commercial banks, according to sources familiar with the matter who spoke to Bloomberg.
As the world’s largest gold consumer, China typically imposes restrictions on the volume of physical gold entering its domestic market. However, according to these sources, additional quotas were granted last week to meet the rapidly growing appetite, although the decision has not yet been officially announced.
This development comes at a time of heightened geopolitical and trade tensions, particularly the ongoing China-U.S. trade dispute, which has driven many investors to seek safety in gold. Since the end of 2022, gold prices have soared, reaching new all-time highs in recent months.
Government-led initiatives, such as a pilot program allowing insurance funds to invest in gold, have also boosted domestic demand. Gold-backed ETFs in China have witnessed unusually strong inflows, mainly driven by individual investors looking for asset security.
Insiders noted that the new quota allocation is part of the central bank’s routine operations in response to commercial bank requests, and should not be interpreted as a signal of the bank’s position on gold prices or an indication of official gold purchases.
Gold climbed 6.6% last week, hitting a record $3,245.75 per ounce on Monday, powered by robust global demand—especially from Asian markets.
