China's gold buying tops 1,000 tons

China imported more than 1,000 tons of gold through August 2026, according to the latest customs data. That volume already exceeds the country's total gold imports for the entire 2025. "Strong investment demand keeps onshore gold prices at a slight premium to world benchmarks. That premium attracts more imports into China," said Adnan Agar, Director at Interactive Commodities. Customs records that go back to 2017 show January-to-August 2026 imports as the highest for that period. The 2026 bar on the chart stands well above the previous years and crosses the 1,000-ton mark. Zijie Wu, an analyst at Jinrui Futures Company, cited by Bloomberg, noted that the premium and robust investment demand continued to pull gold into the country. A firmer yuan and lower international prices also support buying, said Agar. Meanwhile, gold prices in Pakistan declined on Tuesday in line with losses in the international market, as investors priced in a more restrictive monetary policy path from the US Federal Reserve this year and kept a close watch on the conflict in the Middle East. According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the 24-karat gold fell Rs1,800 per tola to Rs455,736. Ten grams of 24-karat gold were quoted at Rs390,720 after a drop of Rs1,543, while 10 grams of 22-karat gold declined Rs1,414 to Rs358,173. The slide extended Monday's sharper correction, when the per-tola rate dropped Rs2,700 and closed at Rs457,536. Silver also weakened, falling Rs62 to Rs7,038 per tola. Ten grams of silver dropped Rs54 to Rs6,033. The association put the international silver price at $65.60 an ounce after a decline of $0.62. In global trade, spot gold was down 0.4% at $4,325.03 per ounce by 12:10 pm ET (1610 GMT). US gold futures fell 0.5% to $4,362, according to Reuters. APGJSA reported the international rate at $4,332 an ounce after a decline of $18. Bullion is now more than 22% below the all-time high recorded in January. Markets have shifted towards a tighter Federal Reserve stance. Traders see a 90% chance of a rate increase in December, according to the CME FedWatch tool, up from about 80% a week earlier. St Louis Fed President Alberto Musalem and Chicago Fed President Austan Goolsbee both said further hikes may be needed to contain inflation driven by strong demand and elevated energy prices. That follows last week's increase in the US policy rate and comments from Fed Chair Kevin Warsh flagging additional tightening in the months ahead. Higher interest rates typically reduce gold's appeal because the metal pays no yield, while a firmer dollar makes bullion more expensive for holders of other currencies. "The problem remains that despite oil trending down somewhat, the market is continuing to robustly price Fed hikes … over the last few days, we've had a bit of strength on the US dollar side, and that's typically a negative for gold," said Bart Melek, Global Head of Commodity Strategy at TD Securities. Furthermore, the Pakistani rupee extended its marginal gains against the US dollar in the inter-bank market on Tuesday, closing at 277.21, up Rs0.01 from Monday's settlement at 277.22. Globally, a firm dollar kept the Japanese yen under pressure as traders wagered that policymakers in Japan would struggle to match a hawkish turn by other major central banks, leaving Japanese rates far below those of peers. After slipping on Monday, the yen traded at 157.33 versus the dollar early Tuesday. Moves were contained by a holiday in Japan and the risk of intervention after the Nikkei reported authorities checked dollar/yen rates on Friday, often a precursor to stepping into the market. Broader financial markets were buoyed by falling oil prices.