China's Gold Imports Surge to Two-Year High Amid Lower Prices and Stronger Yuan
China's gold imports reached a two-year high in June, totaling approximately 173 tonnes. This increase was driven by lower international gold prices and a stronger yuan, which made gold more attractive to investors. Chinese banks, motivated by the new licensing regime that began on June 1, used up their import quotas to stock up on bullion. This move was aimed at meeting retail commitments and building inventories for retail bullion sales and gold accumulation plans. The trend of increased imports began in May, with imports reaching 163 tonnes, indicating a resilient demand in the world's largest bullion market. The People's Bank of China controls the import quotas, which are given out irregularly, and the recent changes incentivized banks to maximize their quotas. 
