China's gold demand surges, tops 1,000 tonnes



BEIJING/SINGAPORE: China's gold consumption jumped 41% in 2013 to exceed 1,000 tonnes for the first time, an industry body said on Monday, as a sharp slide in prices attracted buyers for jewellery and bullion.

The demand surge has helped China become the No 1 gold consumer and should support prices, which took a hit last year from expectations of a tapering of commodities-friendly economic stimulus by the US Federal Reserve and a drop in demand in the other major buyer India.

Gold consumption in China grew to 1,176.40 tonnes last year, with jewellery 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 hit a record as gold prices fell for the first time in 13 years amid an improving global economy and a rally in equities. Prices tumbled 28% in 2013.

"The sharply lower prices attracted a lot of Chinese consumers looking for bargains," said Chen Min, an analyst at Jinrui Futures in Shenzhen.

"Gold will continue to be an attractive investment in China in the near term as prices look steady near US$1,200 an ounce," Chen said.

Data last month showed that China's 2013 gold imports from Hong Kong more than doubled from the previous year to reach a record 1,158.162 tonnes.

Data from the industry association also showed that China's gold output in 2013 rose 6.2% from the previous year to a record high 428.163 tonnes, making the country the world's biggest producer for a seventh straight year.

China's gold consumption figures 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 latest figures on the central bank's website.

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

China's foreign exchange reserves, the world's largest, rose to US$3.82tril at the end of 2013 – Reuters.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

   

Next In Business News

CPO futures likely to trend higher next week
Asian LNG spot prices rise as China replenishes inventories
US stops short of branding Vietnam, Switzerland, Taiwan currency manipulators
Oil price down but secures weekly gain on recovery hopes
GLOBAL MARKETS-World stocks at new peaks on strong China, US data
Food for thought
Food inflation will continue to rise if efficiency is not addressed
Short position - AmBanks' placement, virtual AGMs, glove stocks
The question of MoUs materialising
Kerjaya’s prospects bright

Stories You'll Enjoy


Vouchers