Gold prices have doubled since the end of 2022, with investors piling in at a time of geopolitical uncertainty. The escalating trade war between the US and China has increased the demand for gold, which has repeatedly touched records over the last few months.
The People’s Bank of China has allocated fresh gold import quotas for some commercial banks, people familiar with the matter said, as Beijing responds to strong haven demand from institutional and retail investors in the face of an escalating trade war.

The central bank typically limits the amount of physical bullion coming into the world’s top-consuming market. The additional quotas were allocated last week to meet significantly increased appetite, the people said. They asked not to be named as the decision is not public. The allocation of additional quotas is part of the central bank’s routine functions and follows requests from commercial banks, the people said. They added it should not be interpreted as a view on prices or a sign of central bank purchases. The decision is also seen as a response to the growing demand for gold from institutional and retail investors. Inflows to onshore bullion-backed ETFs, driven by retail investors, have been unusually strong.

• Chinese demand has also been shored up by a pilot programme that allows insurance funds to invest in gold, as part of efforts to optimise their asset allocations.
• Gold prices have surged 6.6 per cent last week, and prices have clinched yet another record of US$3,245.75 an ounce on Monday.

The People’s Bank of China did not immediately reply to a fax inquiry. Goldman Sachs Group, a renowned financial institution, has stated that gold prices are expected to rise further, with predictions of a potential price surge to US$4,000 by mid-2026. The allocation of additional gold import quotas is a response to the escalating trade war between the US and China. The war has increased the demand for gold, which has repeatedly touched records over the last few months.

“The decision to issue the additional quota is not a view on prices or a sign of central bank purchases. It’s a routine function to meet the requests from commercial banks.” – A person familiar with the matter

The allocation of additional gold import quotas is a routine function of the central bank, and it is not intended to influence gold prices.

• The allocation of additional gold import quotas is part of the central bank’s routine functions.
• The decision is a response to the growing demand for gold from institutional and retail investors.
• The allocation of additional quotas is not intended to influence gold prices.

High Demand for Gold Amid Escalating Trade War
The demand for gold has been increasing rapidly due to the escalating trade war between the US and China. The trade war has increased the uncertainty and volatility in the global market, leading to an increase in the demand for gold. The allocation of additional gold import quotas is a response to this growing demand. The central bank is allocating additional quotas to meet the requests from commercial banks, which is a routine function of the central bank. Gold Prices Surging
Gold prices have surged 6.6 per cent last week, and prices have clinched yet another record of US$3,245.75 an ounce on Monday. This surge in gold prices is a result of the increasing demand for gold due to the escalating trade war. The allocation of additional gold import quotas is also expected to contribute to the surge in gold prices. The additional quotas will allow commercial banks to import more gold, which will increase the supply of gold in the market and drive up prices. What does it mean for investors?
The allocation of additional gold import quotas is a positive sign for investors. It indicates that the central bank is taking steps to meet the growing demand for gold, which will increase the supply of gold in the market and drive up prices. The allocation of additional quotas is expected to lead to a surge in gold prices, which will make it a more attractive investment option for investors. The allocation of additional gold import quotas is a response to the growing demand for gold from institutional and retail investors. The decision is also seen as a response to the increasing uncertainty and volatility in the global market.