- China's imports of gold from Switzerland soared to a five-year high last month.
- The 80 tons of gold China imported in July were more than double the volume in June and eight times more than in May.
- China is turning the corner on a slew of Covid-19 lockdowns that weighed on demand.
China's imports of gold from Switzerland jumped to a five-year high last month, according to data compiled by Bloomberg from the Swiss Federal Customs Administration.
The 80 tons of gold China imported in July were more than double the volume in June and eight times more than in May.
Chinese prices for gold also carry a premium of roughly $7 compared to international prices, encouraging investors in China to step up imports, which requires a state-issued license.
The increased appetite for gold comes as the country returns to some semblance of normalcy after being rattled once again by strict Covid-19 lockdowns.
Gold has had a tumultuous year thus far, soaring above $2,000 per ounce in March, then tumbling below $1,700 in July. It's recently found support between $1,700 and $1,800 in recent weeks.
But even as the US Federal Reserve has hiked interest rates in response to persistent high inflation, gold has yet to live up to investors' expectations as a hedge against inflation. The dollar, for example, has strongly outpaced bullion from the start of the year.