China Imports Record Gold as India Curbs Purchases
China imported a record 1,000 tonnes of gold in early 2026 while India raised customs duties to protect its foreign exchange reserves.
The Government of China imported a record 1,000 tonnes of gold during the first eight months of 2026, spending $158.8 billion. This surge in purchasing by the central bank and private investors follows a period of reduced buying in 2025 and coincides with Chinese holdings of US Treasuries falling to their lowest level since 2008. Officials and investors are diversifying assets in response to geopolitical tensions and poor local returns.
In contrast, the Government of India is taking steps to restrict non-essential gold imports to stabilize the rupee and protect foreign exchange reserves amid high fuel costs. In May 2026, India raised effective customs duties on gold and silver from 6% to 15% and scrapped a key bank IGST import tax relief policy.
Prime Minister Narendra Modi has publicly appealed to Indian citizens to avoid gold purchases for one year. He stated that the country must prioritize essential imports, specifically crude oil and fertilizers, over precious metals.
