Gold Slips to Test $4300 as China's Imports Hit Headlines, Oil Prices Drop

AI desk brief

Gold briefly dipped below $4,300/oz before rebounding above $4,330 in London, as a stronger dollar and easing Middle East supply fears pushed crude lower while headlines on China’s bullion imports supported the metal. The article says China has imported more than 1,000t of gold so far this year, with customs-based analysis showing $167bn of imports in the first eight months of 2026 versus $19bn of exports, underscoring still-heavy demand flows even as domestic jewellery demand softens at record prices.

BullionVault also notes gold’s day-to-day correlation with Brent has weakened sharply in September to 31% from 55% in July-August, after falling as low as 26% in the immediate aftermath of US-Israeli strikes on Iran. StoneX’s Rhona O’Connell cites a cumulative 3,862t surplus of supply over demand across the past decade when China’s import data are compared with domestic mine output and consumption estimates, while Brad Setser argues China is not moving away from the dollar but reallocating reserves into state banks and other quasi-sovereign holders.