China Gold Imports Surge to 11-Month High in May Amid Record Prices

China’s Gold Imports Surge Amid Rising Prices and Geopolitical Tensions

China’s gold imports soared to an 11-month high in May, reaching a total of 127.5 metric tonnes, a remarkable 73% increase from the previous month, according to recent customs data. This surge comes as gold prices have skyrocketed by more than 20% so far this year, driven by geopolitical tensions and increasing central bank purchases, particularly by the People's Bank of China (PBoC), which allocated new quotas to commercial banks in April.

The rising gold prices peaked at an all-time high of $3,500 per ounce in April, marking a significant rally in the precious metal market. These factors, along with global economic uncertainties, have prompted China to ramp up its gold imports, solidifying the nation's role as one of the world’s largest gold buyers.

In addition to gold, other metals also saw notable production changes in China. The country’s copper output reached a record high in April, with a 9% year-on-year increase, producing 1.25 million tonnes. Meanwhile, lead production saw a slight decline, falling by 1% to 664,000 tonnes, whereas zinc production experienced a marginal rise of 0.3%, reaching 576,000 tonnes.

This surge in gold imports is a reflection of China’s proactive approach to bolstering its reserves amid ongoing global uncertainties.