China 2020 gold consumption drops due to COVID-19, says industry association (updated)

China Gold International Resources

01/02/2021 03:53

(Adds details)
    BEIJING, Feb 1 (Reuters) - China's gold consumption fell by
almost a fifth in 2020, the China Gold Association said on
Monday, as the coronavirus outbreak choked gold processing and
dented retail consumption.
    China gold consumption in 2020 fell 18.13% from a year ago
to 820.98 tonnes, the association said on its website, with the 
consumption of jewellery down 27.45% at 490.58 tonnes and 
industrial and other gold consumption 16.81% lower at 83.81
tonnes.   
    However, top gold user China's consumption of 2020 gold bars
and gold coins rose 9.21% to 246.59 tonnes year-on-year. 
    Some gold retailers have opened up new markets online and
had outstanding sales, but due to a low online sales base they
could not compensate for the decline in store sales hurt by the
COVID-19 pandemic, the association said.
    A looser monetary policy and volatility in gold prices
increased private investors' interest in gold, the association
added.
    Benchmark spot gold prices  XAU=  surged 25% in 2020, having
hit an all-time high of above $2,000 an ounce in August
    In the second half of the year, the consumption of gold bars
and gold coins soared 50.91% year-on-year reversing the
consumption trend of gold bars and gold coins throughout the
year.
    In the first half of 2020, the national actual consumption
of gold was 323.29 tonnes, a decrease of 38.25% compared with
the same period in 2019 and the consumption of gold bars and
gold coins fell 32.12% to 76.98 tonnes over the same period.
    Gold output fell 3.91% to 365.34 tonnes last year, according
to the association.
   
    

 (Reporting by Shivani Singh, Muyu Xu, Min Zhang and Vincent
Lee; Editing by Kim Coghill and Amy Caren Daniel)
 ((muyu.xu@thomsonreuters.com; +86 10 56692117;))