Gold companies operating in China increased their production levels during the first quarter of 2023. According to industry reports, the Chinese gold industry was able to restore its extraction levels, reaching the numbers it witnessed before the Covid epidemic, with the country entering into a record series of gold purchases during the months past five.
China restores gold production levels during the first quarter
China was able to increase its gold extraction levels during the first quarter of 2023. Chinese companies saw a reward for their production efforts during the first quarter of 2023, as large mines were able to restore their numbers to pre-pandemic levels.
According to reports from the China Gold Association reported by Xinhua, gold mines operated by China’s largest mining companies produced 32.72 tons of the precious metal during the first quarter of 2023, nearly half of the gold produced in the country during that period. a period.
China is the largest producer of gold in the world. produced 372 tons of gold in 2022, according to figures from the China Gold Association, defying pessimistic forecasts for reports Which indicated a decline in this activity due to complications from Covid, among other factors. However, last year’s numbers are a far cry from the 453.5 tons that China produced in 2016, the highest number in its history.
Central banks continue to buy gold
The recovery of Chinese gold production is key for the country in a market where central banks have kept gold demand high. In March, the World Gold Council stated that central banks are likely to continue buying gold this year, adding to their reserves even if purchases do not reach the record levels recorded during 2022.
Much of that demand comes from China, which added more than 100 tons of gold to its coffers during the five-month buying spree. China’s national gold reserves are estimated at 2,068 tons. However, the largest buyer Of gold last year was the Central Bank of Turkey.
Analysts speculated that this gold rush may be related to the recent dollar depreciation movement that some countries have been making in the global markets. Reserves held by central banks in US dollars fell to 47% in 2022, something some interpret as a flight to safety for other currencies and gold amid geopolitical uncertainty over dollar-based sanctions. Jan Nieuwenhuijs, a gold market analyst, predicted that this flight to safety could lift the price of a troy ounce of gold to $8,000 as banks convert historical levels of reserves into the precious metal.
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