BEIJING – China’s gold consumption rose 9.41 per cent to 1,089 tonnes in 2017 on the back of strong domestic demand, making the country the world’s biggest gold consumer for the fifth straight year, new data showed on Thursday.

Consumption of gold jewelry went up 10.35 per cent to 696.5 tonnes, while that for gold bars rose 7.28 per cent to 276.4 tonnes, said the China Gold Association.

Consumption for industrial and other use surged 19.6 per cent to 90.18 tonnes.

The association attributed the growth to recovering high-end demand and rising consumption in China’s second and third-tier cities. Volatilities in the financial markets also made gold an ideal investment choice.

Last year, China’s gold output went down 6 per cent to 426 tonnes, but it still retained its position as the world’s biggest producer for the

11th consecutive year.

China adopted new rules in 2016 to raise environmental requirements on solid waste from gold prospecting, leading to a wave of gold mine closures and output declines in the major producing provinces, including Shandong, Jiangxi, and Hunan.

Xinhua