Gold production, consumption drop in H1 amid COVID-19 pandemic

Source: Global Times Published: 2020/7/28 15:43:41

A shopkeeper arranges gold jewelry in Mumbai, India. Photo: IC



China's gold output reached 217.8 tons in the first half of 2020, dropping 7.3 percent year-on-year, according to a report released by the China Gold Association (CGA) on Tuesday.

China's gold raw material production was 170.07 tons in the first six month of 2020, a decrease of 10.61 tons - or 5.87 percent - compared with the same period in 2019. The country imported 47.73 tons of gold raw materials in the first half year, down 12.05 percent year-on-year.

Affected by the COVID-19 pandemic and slowing economic growth, China reduced its gold output in the first six months of the year. China's gold consumption also dwindled as gold prices rose, the CGA said.

The association said China's actual consumption of gold dropped 38.25 percent year-on-year to 323.29 tons in the first six months. Consumption of gold jewelry was at 207.87 tons, a year-on-year decrease of 42.06 percent, and gold bars and gold coins 76.98 tons, a year-on-year decrease of 32.12 percent. Gold consumption for industrial and other uses reached 38.44 tons, a year-on-year decrease of 25.16 percent.

The global gold price averaged $1,645.42 per ounce in the first six months, up 25.94 percent compared to the same period a year earlier. The average price of Au 9,999, a highly refined pure gold product, soared 28.28 percent year-on-year on the Shanghai Gold Exchange (SGE) in the first half year to 369.09 yuan ($52.67) per gram.

The trading volume of all gold products on the SGE rose 13.28 percent year-on-year to 33,800 tons in the first six months, with combined turnover rising 44.03 percent to 12.43 trillion yuan, CGA data showed.

In the same period, the total trading volume of gold futures on the Shanghai Futures Exchange rose 42.48 percent to 43,000 tons, with turnover surging 74.17 percent from a year earlier to 15.40 trillion yuan, according to the CGA.

Global Times



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