Gold consumption in China remained strong in the first quarter of 2017 amid a decline in production, according to the China Gold Association.
The Chinese market consumed 304.14 tonnes of gold during the period in review, a 14.7 percent rise from last year, the association said in a recent report. China’s gold production in Q1, meanwhile, dropped 9.29 percent to 101.2 tonnes.
The report attributed the decline in gold production to macroeconomic uncertainties. Reluctance to produce gold due to low profit margins also worsened the problem, according to the association.
Stronger gold consumption, mainly attributed to high demand of gold jewellery during the Chinese New Year, provided a much-needed encouragement to the industry, the report explained.
Besides gold jewellery, gold bars recorded a significant year-on-year growth of 60.18 percent to 101.19 tonnes. Gold bars are increasingly becoming popular in China as a hedging tool, the report added.