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China’s gold production rose 6.9 percent in the first quarter of 2023, returning to pre-pandemic levels, thanks in part to a jump in demand for gold and jewelry, as investors sought a safe haven away from financial market volatility.
China’s Association of Gold Companies said on Tuesday that China’s production of domestically extracted gold increased 1.9 percent to 48.97 tons in the January-March period compared to the same period last year, as production capacity returned to pre-Covid-19 levels.
Gold production made from imported raw materials rose 24.4 percent year on year to 29.9 tons in the first quarter, contributing to a total output of 114.87 tons.
The union said that gold consumption in the world’s largest consumer of the precious metal increased 12 percent year-on-year to 291.6 tons between January and March.
Consumption of gold ornaments increased by 12.29 percent year-on-year to 189.61 tons, while demand for bars and gold coins increased by 20.47 percent year-on-year to 83.87 tons.
However, the use of gold in industry and other purposes fell 16.9 percent year-on-year to 18.1 tons, according to the federation.
The rise in demand for bullion and gold coins is due to investors fleeing from risks after the collapse of two banks in the United States and Credit Suisse in Europe obtaining a rescue package.
The People’s Bank of China (the central bank) continued to buy gold in March for the fifth consecutive month, raising its reserves of the yellow metal by 57.85 tons to 2068.38 tons.
