China’s appetite for gold continues to surge both at the retail and institutional level, even as global prices for the precious metal hover near record highs.

Notably, gold has been among the hottest assets across 2025, hitting new highs above the $3,500 support spot. By press time, the commodity was valued at $3,727, up 1.15% for the day. 

Regarding the country’s gold demand, data shows that non-monetary imports jumped 64% month-over-month in July to 104 tonnes, the second-highest level this year. 

That figure is also about 9% above the five-year average of 95 tonnes, pointing to resilient demand despite elevated costs, according to China’s General Administration of Customs data shared by The Kobeissi Letter on September 22.

On the other hand, non-monetary imports, covering purchases by households, jewelers, and private investors, have cemented China’s role as the world’s largest gold market. 

PBOC’s unrelenting gold demand 

Meanwhile, official reserves are also expanding. In this case, the People’s Bank of China (PBOC) raised its gold holdings for the tenth consecutive month in August, lifting total reserves to a record 74 million ounces. 

Together, surging imports and central bank purchases point to a structural shift in global gold demand.

Notably, China’s combined consumer and official buying has been instrumental in sustaining the 2025 gold rally, helping prices stay near record highs and limiting downside risks.

Therefore, this trend reflects deeper economic undercurrents where it can be argued that  households and investors are seeking safety amid slowing growth, property market strains, and a weaker yuan, while the PBOC’s strategy reflects Beijing’s push to reduce reliance on the dollar.

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