China’s Q1 gold consumption jumps 93.9% y/y on robust demand

Image from World Gold Council via Twitter.

China’s gold consumption soared 93.9% in the first three months from the same quarter a year earlier, recovering to pre-pandemic levels fuelled by strong demand for gold jewelleries and rising investment, the China Gold Association said on Friday.

Consumption in China in the first quarter stood at 288.2 tonnes, compared with 148.63 tonnes a year ago, the association said in a statement on its website.

The rise came as spending for gold jewelleries picked up quickly during China’s Lunar New Year holidays and Valentine’s Day, said the association.

“Recovery in macro economy and falling gold prices have also extended enthusiasm towards gold investment,” the association said, adding that demand for industrial used gold increased as well.

Spot gold prices have fell 6.6% so far this year.

A World Gold Council official said on Thursday that China’s gold demand is seen to log a positive growth this year if there are no dramatic changes to the global economic and geo-political situation.

China’s gold output, however, fell 9.92% to 74.44 tonnes in the January-March period from a year earlier, data from the association showed.

The country’s eastern Shandong province reported two gold mine accidents earlier this year, leading to production suspension for safety inspections, which is “the major reason for production decline”, said the association.

Gold output at major producers including China Gold, Shandong Gold Mining, Zijin Mining and Zhaojin Group, were at 30.78 tonnes in the first quarter, lifting their proportion to 52.25% among national production, the gold association said.

(By Min Zhang and Shivani Singh; Editing by Jacqueline Wong and Rashmi Aich)

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