Daily closing prices of gold reported by the London Bullion Market Association (LBMA)

Gold Prices Soar to $2,400, Up 46% in Yuan Amid Chinese Buying Spree

Apr 21, 2024, 12:00 PM

Gold prices have surged to all-time highs above $2,400 an ounce, driven by robust demand from China. This unprecedented demand is fueled by various factors including the Chinese central bank's continuous buying spree for 17 consecutive months, and significant consumer and investor interest. The premium paid by Chinese importers for gold jumped to $89 an ounce at the start of April, a substantial increase from the $35 premium over the past year. Additionally, gold's appeal as a safe-haven asset has been reinforced by its traditional role as a hedge against inflation and currency devaluation, with the yuan also experiencing declines. This surge in gold prices and demand comes amid a backdrop of global economic uncertainties, including inflation concerns and geopolitical tensions, which have also led to a decline in China's home prices over the past 32 months. Gold has risen 46% in yuan terms since the house price collapse began. Chinese gold jewelry demand rose by 10%, and bar and coin investments have also increased. In the last two years, Chinese gold imports totaled over 2,800 tons.