BEIJING: China’s gold production jumped 6.9% in the first quarter of 2023 recovering to pre-pandemic levels, partly spurred by a jump in demand for gold and jewellery as investors sought safe havens away from jittery financial markets.

China’s mined gold output rose 1.9% to 84.97 tonnes in the January-March quarter from the same period a year earlier, as capacity returned to pre-COVID-19 levels, with 78% of that from gold mines and the rest from non-ferrous by-products, the China Gold Association said on Tuesday.

Gold made from the imported raw materials rose 24.4% year-on-year to 29.9 tonnes in the quarter, contributing to a total output of 114.87 tonnes. Gold consumption in the world’s largest gold consuming nation grew 12% year-on-year to 291.6 tonnes over January-March, the association said.

Gold jewellery consumption grew by 12.29% year-on-year to 189.61 tonnes, while gold bar and gold coin demand increased by 20.47% on the year to 83.87 tonnes.

However gold use in industrial and other areas fell 16.9% on the year to 18.1 tonnes, the association said.

The rise in demand for gold bars and gold coins stemmed from investors fleeing risk after two banks collapsed in the United States and Credit Suisse in Europe had to be rescued.

The People’s Bank of China continued to buy gold in March for the fifth month in a row, increasing its reserves by 57.85 tonnes to 2,068.38 tonnes.