(Bloomberg)- Gold output in China, the world’s largest producer, is poised to go up almost 10% this season to an archive even while bullion prices slump, the nation’s mining association said.
Output may rise to around 440 metric tons, said Wang Jiahua, executive vice chairman at the China Mining Association. The nation, which overtook South Africa as the greatest producer in 2007, had output of 403 tons in 2012, based on data from the Beijing-based group, an affiliate of the Ministry of Land and Resources.
Bullion extended its drop this season to 23% and hedge funds cut bets on a rally by probably the most since February after the Federal Reserve said it might slow a bond-buying program that’s been pumping stimulus into global markets. That hasn’t deterred buyers in the 2nd largest economy, which can pass India as the greatest gold consumer as early as this season as regulators in Beijing make buying the precious metal easier.
Production gained 12% in the initial four months from the year earlier to 122.89 tons, in line with the producer-funded China Gold Association, which publishes estimates monthly.