China's gold consumption rises 9.4 pct in 2017 -state TV

Beijing-China (Feb 1)  Gold consumption in China grew by 9.41 percent from the previous year to 1,089 tonnes in 2017, state television CCTV reported on Thursday, citing figures from the China Gold Association.

Sales of gold jewellery in China were up 10.35 percent to 696.5 tonnes, while those of gold bars - bought as a safe-haven investment in times of geopolitical uncertainty - were up by 7.28 percent to 276.39 tons, CCTV said on its website.

Gold output in China, the world's largest producer of the metal, fell by 6.03 percent from 2016 to 426.14 tonnes last year, CCTV said.

This was despite the country's biggest producer, China National Gold - which accounts for around 10 percent for China's overall production - last month reporting record-high output for 2017. CCTV said the overall drop was the first "big" one since 2000 and came as the result of production cuts and mine closures that followed the introduction of environmental and resource tax policies in China, as well as the withdrawal of mining rights in some environmentally sensitive areas.

Still, the trade volume for gold products on the Shanghai Gold Exchange, the world's largest physical gold exchange, jumped by 11.5 percent last year to 54,292 tonnes, the bourse said in January, with turnover increasing by 14.8 percent from the previous year to 14.98 trillion yuan ($2.38 trillion).

Spot gold prices rose by more than 13 percent during 2017, peaking at $1,357.54 an ounce. Spot gold has continued to rise this year, up more than 3 percent for 2018 so far. ($1 = 6.2900 Chinese yuan)

Reuters