China’s Gold Production Soars in Q1 as Central Banks Keep Buying

• Chinese gold industry managed to recover its extraction levels, reaching numbers it saw before the Covid pandemic.
• Central banks have kept gold demand high during the first quarter of 2023.
• Analysts have speculated that this gold rush might be related to recent de-dollarization efforts from certain countries.

China Recovers Gold Production Levels During Q1

The Chinese gold industry managed to recover its extraction levels during the first quarter of 2023, reaching numbers seen before the Covid pandemic. Chinese companies saw their production efforts rewarded as large mines recovered their numbers to pre-pandemic levels according to reports from the Gold Association of China quoted by Xinhua, with China producing 372 tons of gold in 2022.

Central Banks Keep Buying Gold

Central banks will likely keep buying gold this year, adding to their reserves even if the purchases do not reach record levels registered during 2022. Much of this demand is coming from China which has added more than 100 tons of gold to its coffers during a five-month buying streak and has an estimated 2,068 ton national reserve. Turkey was the biggest buyer last year however analysts speculate that this is due to de-dollarization movements from certain countries seeking safety outside dollar based assets such as currencies and gold amidst geopolitical uncertainty regarding sanctions.

Gold Demand High Amidst Geopolitical Uncertainty

Analysts believe that recent de-dollarization efforts are causing central banks around the world to purchase large amounts of gold for their reserves as a way to seek safety outside dollar based assets amidst geopolitical uncertainty regarding sanctions and other factors. This has caused demand for gold in world markets during the first quarter of 2023 despite pessimistic projections pointing towards a decline in activity due to Covid complications.

China Leads Global Gold Production

China is regarded as one of, if not the biggest producer of gold in the world with 453.5 tons produced by them back in 2016 being highest number recorded in their history and 372 tons produced last year alone despite Covid complications and other factors according predictions made by reports at the time. The recovery of Chinese output is key for global markets given how much they produce each year and thus far have been able keep up these levels throughout 2021 into Q1 2023 with 32.72 tons extracted over that period alone per reports from The Gold Association Of China .

Jan Nieuwenhuijs Predicts Flight To Safety Jan Nieuwenhuijs , a market analyst specialising in precious metals believes that these results further prove his prediction that there will be a flight away form US dollars which he believes may be linked directly with central bank’s purchasing large amounts or precious metals like Gold for their reserves as a way seek safety outside dollar based assets amidst geopolitical uncertainty regarding sanctions and other factors .