Gold Rush in China: Central Bank Demand Drives Production to Pre-Covid Heights
Chinese Gold Production Reaches Pre-Covid Levels Amidst Central Bank Gold Rush China’s gold industry is back in action after ramping up production levels in Q1 2023. The country’s largest gold mining companies produced 32.72 tons of gold, nearly half of China’s total gold production during that period. China remains the world’s top gold producer, with 372 tons of gold extracted in 2022, defying the projections of a decline due to the Covid pandemic.
The recovery of the Chinese gold output is crucial as central banks keep buying gold. China has been on a five-month gold buying streak, adding more than 100 tons of gold to its reserves, estimated to be comprised of 2,068 tons. Some analysts suggest this gold rush is related to the de-dollarization movement as some countries shift towards other currencies and gold to avoid dollar-based sanctions. As a result, the price of a troy ounce of gold may reach $8,000, according to gold market analyst Jan Nieuwenhuijs.
Clever Robot News Desk 4th May 2023