Gold Demand in China Increased, Over 1,000 tonnes for The First Time

china gold

(Reuters) – China’s gold utilization leapt 41% in 2013 to exceed 1,000 tonnes for the first time, an industry body said on Monday, as a sharp slide in prices captivated purchasers for jewelry and bullion.

The demand rush has helped China become the No. 1 gold buyer and should support charges, which took a hit last year from anticipations of a tapering of commodities-friendly financial incentive by the U.S. Federal Reserve and a fall in demand in the other major purchaser India.

Gold consumption in China increased to 1,176.40 tonnes last year, with jewelry demand climbing 43% to 716.50 tonnes and bullion demand soaring 57% to 375.73 tonnes, the China Gold Association said on its website.

Chinese demand strike a record as gold charges dropped for the first time in 13 years in the middle of an advancing global finances and a rally in equities. Prices tumbled 28% in 2013.

Data last month displayed that China’s 2013 gold trades from Hong Kong more than doubled from the previous year to come to a record 1,158.162 tonnes.

facts and figures from the industry association furthermore showed that China’s gold yield in 2013 rose 6.2% from the preceding year to a record high 428.163 tonnes, making the homeland the world’s biggest producer for a seventh straight year.

China’s gold consumption numbers do not include demand from the central bank, whose gold reserves stand at 33.89 million ounces (1,054 tonnes), unchanged since April 2009, according to the newest figures on the centered bank’s website.

China last broadcast a rise in its gold reserves in April 2009 and has not modified the number since, though there had been recent market conjecture that the bank had been accumulating gold reserves and would announce a new figure.