China Is Buying Gold at a Record Pace
Something unusual is happening in the gold market in 2026. China is buying gold at a pace that is much higher than in the past. In the first eight months of 2026, until the end of August, China imported a record 1,141 tonnes of gold. This is a very large amount when compared with the total gold produced around the world each year.
China Could Buy 1,700 Tonnes
The global gold market gets around 3,000 to 3,500 tonnes of new gold production every year. In earlier years, China normally bought around 800–900 tonnes, while India also bought a similar amount. But at the current pace, China could buy around 1,700 tonnes in 2026. That would mean China alone could consume more than half of the world’s annual gold production.
Physical Gold Is Being Encouraged
China’s gold demand is not only coming from large investors. There is also a strong push toward physical gold buying by ordinary citizens. People are being encouraged to buy physical gold instead of leveraged gold products or gold ETFs. Gold ETFs have also added demand this year, with around 44 tonnes of additional buying, but physical gold remains the main focus.
Why Is Gold Demand So Strong?
One reason behind this strong demand is the current period of economic uncertainty. There is also another important factor. The yuan has become stronger against some other currencies, making gold imports cheaper for Chinese buyers. When gold becomes more affordable and people are worried about the future, demand for physical gold can rise further.
A Strong Support for Gold Prices
This buying creates what can be called a structural demand for gold. In simple terms, there is now a large amount of buying support in the market. This could make it harder for gold prices to fall sharply because buyers may step in when prices become weaker. China’s buying is therefore becoming an important factor for the global gold market.
What Could Happen After the Weak Phase?
Gold can still go through periods of weakness, especially when some investors decide to sell. But once these weaker sellers are out of the market, strong physical demand could become more visible. If China’s gold buying continues at the current pace, it could provide an important base for gold prices and support a fresh rise after the current weak phase ends.
