China's gold consumption reports stable recovery in H1

BEIJING, Aug. 3 (Xinhua) -- China's gold consumption went up 69.21 percent year on year to 547.05 tonnes in the first half of this year. The demand not only surged significantly year on year but also hovered above pre-pandemic levels, industry data showed Tuesday.

Consumption of gold jewelry in the Chinese market rose 67.68 percent from a year earlier to 348.56 tonnes in the January-June period, according to data released by the China Gold Association (CGA).

During the same period, the fluctuation of gold prices and the recovery of the Chinese domestic economy fueled investment demand for the yellow metal.

According to the CGA, consumption of gold coins and bars soared 96.28 percent year-on-year to 151.1 tonnes in H1, while consumption of gold for industrial and other use grew by 23.28 percent from a year earlier to 47.39 tonnes.

In contrast, gold-backed ETF experienced a slight outflow of 3.7 tonnes in the second quarter, mainly because some investors chose to trade the investments to cash. The modest outflows only partly offset the strong inflows from the first six months.

According to the CGA, in the first half of this year, holdings of gold ETFs listed in China saw an increase of 7.76 tonnes, bringing the total holdings of gold ETFs in the Chinese market to 68.67 tonnes.

China produced 152.75 tonnes of gold in the first six months of this year, a decrease of 17.32 tonnes or 10.18 percent compared to the same period of last year, CGA data showed.