China's gold output up 1.49% in Q1

BEIJING - China produced over 87.24 tons of gold in the first quarter of this year, an increase of 1.28 tons -- or 1.49 percent -- from the same period last year, data from the China Gold Association showed.

From January to March, gold consumption in the Chinese market dipped 5.96 percent year-on-year to 290.49 tons, the data showed.

In the first quarter, the consumption of gold jewelry in China totaled 134.53 tons, down 26.85 percent year-on-year, while that of gold coins and bars soared 29.81 percent to nearly 138.02 tons, the association said.

Gold consumption for industrial purposes and other uses came in at 17.94 tons during the period, down 3.84 percent from last year.

Due to high gold prices, consumption demand for gold jewelry remained weak in the first quarter, though the complex, unpredictable geopolitical situation and economic uncertainty have reinforced the role of gold as a hedge and store of value, driving up demand for gold bars and coins as investment assets, the association said.

It noted that gold-backed exchange-traded funds in the Chinese market saw strong growth momentum over the period.