China Spends $158.8 Billion on Record Gold Imports Through August 2026 as India Raises Import Duties to 15 Percent

Chinese central bank and private purchases accelerated after holdings of US Treasuries fell to $618 billion in July, the lowest since 2008. Official data show spending rose from $96.5 billion for 886 tonnes in 2025, with diversification cited as the driver amid domestic asset weakness. Indian measures in May 2026 lifted basic customs duty to 10 percent plus 5 percent cess, reversing earlier IGST exemptions for banks and agencies.

India’s policy shift targets current-account pressure from elevated oil prices and rupee weakness, following a public appeal by Prime Minister Modi to defer gold purchases. The duty increase mirrors past episodes when authorities restricted non-essential imports to preserve reserves. China’s sustained buying, by contrast, treats gold as a counterparty-risk-free asset without reliance on Treasury holdings.

Competing incentives are clear: Beijing gains a hedge against geopolitical and growth uncertainty; New Delhi reduces immediate FX outflow at the cost of higher domestic prices. Primary records confirm both moves without reference to values or external narratives.

Further duty adjustments or quota tightening by India remain likely if crude stays above recent averages; Chinese import volumes will track People’s Bank reserve data and domestic ETF flows through year-end.