China's Gold Imports Top 2,800 Tons, Driving Prices Above $2,400

Apr 21, 2024, 12:00 PM

China's significant increase in gold imports and purchases has driven gold prices to record highs, with the precious metal reaching over $2,400 an ounce. Over the past two years, China has imported more than 2,800 tons of gold, exceeding the reserves backing global ETFs and constituting about a third of the U.S. Federal Reserve's stockpiles. The Chinese central bank has been consistently buying gold for 17 consecutive months, contributing to the surge in prices. This demand is fueled by the yuan's depreciation and the Chinese public's concerns about currency devaluation and inflation, making gold a preferred investment. The premium for Chinese gold imports has also risen sharply, reaching $89 per ounce at the start of April, compared to the average of $35 over the past year.