Chinese gold consumption rose 0.8% in Q1 when compared to the same time period last year according to the China Gold Association (CGA).

Over this time period gold jewellery consumption rose 30.2% to 232.53 tonnes but consumption of investment bars fell 43.56% to 67.95 tonnes. The President of CGA believes the recent price drop has reduced the demand for investment grade bars. State news agency, Xinhua, suggested that legislative changes to the types of gifts government officials can receive may also contributed to lower bar demand.

In a recent report, The World Gold Council estimated that China’s gold consumption will maintain an annual growth rate of 20-25% for the next 3-4 years.