China produces 90 tons, consumes 320 tons in Q1-2013

BEIJING(BullionStreet): World's largest gold producer and second largest consumer China's total gold usage reached 320.54 metric tonnes in the first quarter, China Gold Association said.

According to CGA, purchases of gold bars surged 49% to 120.39 tonnes, while jewelry gained 16% to 178.59 tonnes.

Gold consumption in China soared 26% in the first three months of 2013 from a year ago amid strong bullion sales and rising jewelry demand.

The Association added that country's gold production gained 11% in the same period to 89.91 tonnes.

Analysts said Chinese gold imports are likely to swell further after rising strongly for a second straight month in March, as investors seek safety from economic uncertainty and after prices plunged to a two-year low last month.

Meanwhile, China's net gold inflows from Hong Kong rose to 223.519 tonnes in March from 97.106 tonnes in February.

China produced 403 tonnes of gold in 2012, but consumption was more than double at 832.2 tonnes.

Demand for gold from India and China is a major factor in global prices, with the World Gold Council saying the two countries account for more than a third of global appetite.