China’s gold output increased to 111.56 tonnes in the first quarter of 2016, up 0.78 percent year-on-year, latest statistics from the China Gold Association revealed. As of March 31, 2016, the nation’s gold reserves reached 1,797.5 tonnes.
The increase in output was due to a rebound in international gold prices following the easing of major currencies and stabilisation of commodity prices, according to the association.
China’s gold consumption dropped to 318.28 tonnes in the first quarter, down 3.91 percent compared to the same period last year. Gold jewellery sales, in particular, slid by 14.44 percent to 193.57 tonnes compared to the same period last year.
The country, however, recorded a 22.44 percent increase in gold bullion consumption to 91.35 tonnes, partially offsetting the decline in jewellery sales.
China’s gold trade market is rapidly growing, the association said. The trade volume of the Shanghai Gold Exchange (SGE) reached 11,300 tonnes, up 15.32 percent over the same period last year. SGE has become one of the most important physical gold trade centres in the world, the association noted.