LINE

    Text:AAAPrint
    Economy

    China shores up gold purchases amid rising global uncertainties

    1
    2019-10-25 13:20:40China Daily Editor : Gu Liping ECNS App Download

    Customers look at gold jewelry in a store in Suzhou, Jiangsu province. [Photo by Wang Jiankang/For China Daily]

    China's gold holdings showed a sharp increase in the last 10 months, as the country continued to shore up its purchases amid rising global uncertainties and possibilities of further rate cuts by global central banks, experts said.

    During the 10 months from December 2018 to September this year, China's total holdings of gold rose to 62.64 million ounces (about 1,948 metric tons), according to data from the State Administration of Foreign Exchange.

    "Gold is the best safe haven amid rising global uncertainties as it offers extremely high returns and is easily tradable," said Huo Songling, secretary to the executive board of China National Gold Group Co Ltd, a centrally State-owned firm engaged in the mining and refining of gold, silver, copper, and molybdenum.

    "China has been stocking up on the precious metal ever since it resumed purchases of the yellow metal in December 2018 and the trend is likely to continue," she said.

    During the first six months of this year, trades in the precious metal rose by 101 percent to 8.8 trillion yuan ($1.24 trillion) on the Shanghai Futures Exchange, according to data from the Ministry of Industry and Information Technology. The total volume of gold transactions rose by 88.3 percent year-on-year to 30,200 tons.

    Gold transaction value rose 5 percent year-on-year to 8.6 trillion yuan on the Shanghai Gold Exchange. But total volume of gold transactions edged down by 1.4 percent year-on-year to 29,900 tons.

    "Demand for gold jewelry has risen due to string demand from consumers in the second-and third-tier cities," Huo said. During the first half, gold jewelry consumption rose by 2 percent year-on-year to 358.8 tons.

    "China and Russia are currently the top two gold purchasers. Countries like Turkey and Kazakhstan have also increased their gold reserves," Huo said.

    According to the World Gold Council, central banks had added 374.1 tons of gold to their reserves in the first six months of this year. A report from Bloomberg said that helped push global gold demand to a three-year high.

    "Central banks are also increasing their types of gold stocks," Huo said.

    "Facing ongoing international trade uncertainties, many countries are considering gold a hedge against the US dollar," said Wang Shuli, executive board director for Jingyijinhui, a consulting firm on gold, adding that the trend has pushed up gold prices to some extent.

    The gold spot price hit $1,488.71 per ounce on Thursday, the latest data from online database Gold-price showed. It said the gold price has increased by over 20 percent from a year ago.

    MorePhoto

    Most popular in 24h

    MoreTop news

    MoreVideo

    News
    Politics
    Business
    Society
    Culture
    Military
    Sci-tech
    Sports
    Odd
    Features
    ECNS Wire
    Biz
    Economy
    Travel
    Photo
    CNS Photo
    Video
    Video
    Special Coverage
    Voices
    LINE
    Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
    Copyright ©1999-2019 Chinanews.com. All rights reserved.
    Reproduction in whole or in part without permission is prohibited.
    主站蜘蛛池模板: 昭平县| 常德市| 搜索| 庐江县| 密云县| 巧家县| 兰考县| 九龙县| 通道| 杭锦旗| 太原市| 凌海市| 灵丘县| 彰化县| 高雄县| 师宗县| 恩施市| 钦州市| 建湖县| 葫芦岛市| 霍城县| 石渠县| 江永县| 龙海市| 高台县| 凤凰县| 法库县| 石渠县| 朝阳区| 神农架林区| 双鸭山市| 镇坪县| 新巴尔虎右旗| 虎林市| 罗定市| 札达县| 嘉义县| 香港 | 神农架林区| 邵阳县| 凉山|