The China Gold Association (CGA) revealed today, April 26, that gold consumption in China witnessed a robust increase of 5.94% in the first quarter of 2024 (January-March) compared to the previous year. This surge in demand is primarily attributed to the heightened preference for safe-haven assets amidst economic uncertainties.
According to CGA data, Chinese consumers collectively consumed 308.905 tons of gold during the first quarter of 2024. Notably, purchases of gold bars and coins experienced a significant uptick, soaring by 26.77% to reach 106.323 tons, representing 34% of the total gold purchases.
In contrast, purchases of gold jewelry saw a marginal decline of 3% to 183.922 tons, constituting 59.5% of total purchases. This slight reduction is attributed to consumer caution stemming from the rapid appreciation in gold prices.
The CGA highlighted that the escalating prices of gold have amplified the risks associated with processing and selling gold bullion.
On the production front, China’s domestic gold output from raw materials increased by 1.16% to 85.959 tons. Additionally, gold output from imported raw materials surged by a notable 78% to 53.225 tons. Consequently, China’s total gold output reached 139.184 tons, marking a substantial increase of 21.16%.
The surge in gold consumption and production underscores the evolving dynamics in China’s precious metals market, influenced by factors such as economic uncertainties and shifting consumer preferences towards safe-haven assets. As global uncertainties persist, the demand for gold as a reliable investment vehicle is expected to remain robust, shaping the trajectory of China’s gold market in the coming quarters.