(Yicai Global) April 28 -- Gold production and consumption in China both declined in the first quarter of this year, when Covid-19 was at its peak in the world’s second-largest economy.

Raw gold output fell 10.93 percent to 82.63 tons in the period, the China Gold Association said today, adding that this was a result of mineral gold supplies falling to 67 tons from 75.9 tons due to the pandemic. Nearly 23.7 tons of gold was made from imported materials, up 16.7 percent, while the total from domestic and imported materials fell 6 percent annually.

China brought in measures to curb a surge in gold prices during the Covid-19 outbreak which kept consumption down to 148.6 tons, just over half the total in the first quarter of last year. Consumption of gold jewelry fell by more than half to 92 tons, sales of gold bars and coins fell 47 percent to 37.7 tons, and industrial consumption fell 32 percent to 18.9 tons.

The Au9999 gold on the Shanghai Gold Exchange started the year at CNY341.95 (USD48.25) a gram but ended the quarter at CNY364.70, pushing up the quarterly average price by 24.2 percent on the year to CNY354.19 a gram.

Editor: James Boynton