PRECIOUS METALS

China increases gold consumption

China’s gold consumption has risen 15.49% year-on-year in the first nine months of 2017 mainly due to increased demand for gold bars, according to data from the China Gold Association.

Staff reporter
 Country’s consumption rises more than 15%

Country’s consumption rises more than 15%

The Xinhua news agency quoted CGA figures that said the consumption of gold bars rose 44.45% to 222.07 tonnes and by 7.44% to 503.87t for gold jewellery.

More young consumers are getting married, the South China Morning Post reported, saying brides in villages or lower-tiered cities were typically decked out in gold jewellery as a display of social status and fortune.

The CGA attributed the growth to increasing consumption in second and third-tier cities as well as a cooling housing market and volatile securities market, Xinhua reported.

Meanwhile, the figures showed gold output fell 3.76% in the same period as environmental protection measures impacted production.

The spot gold price is trading above its 12-month average of US$1,245.47 per ounce and was worth $1,280/oz earlier today.

It has fallen back from its one-year high last month of $1,349.22/oz after the US Federal Reserve indicated it would raise interest rates in December.

 

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