Last month, China bought more than 80 tons of gold from Switzerland, according to a report from Bloomberg which cited Swiss customs data. According to the report, that is double the total from June, and eight times more than in May.

That is a five year high, and indicates demand for the metal is growing as the nation comes out of the Covid-19 lockdowns, and the global economy confronts rampant inflation.

Nikos Kavalis, managing director at Metals Focus consultancy said, “The market’s still not great, but it’s definitely a lot better than it was in April.”

Analysts point out that in China presently, the price of gold carries a roughly US$7 premium over international prices, which is encouraging investors to increase imports. Importation of gold into China requires a state-issued license.

Globally, gold prices have slumped below the $1,700 dollar per ounce mark in July, down from more than $2,000 earlier in the year, as rising interest rates caused Western investors to begin selling.