China, the world's third-largest gold consumer, expects its consumption of the precious metal to reach about 350 tonnes and gold output to top 240 tonnes this year, state media reported on Tuesday.
China's gold consumption had exceeded 300 tonnes in 2005, of which 80 percent went to jewellery-making, the official Xinhua news agency cited Cheng Fumin, chairman of the China Gold Association, as saying.
The World Gold Council put China's 2005 gold demand at 253.1 tonnes, including 241.1 tonnes for jewellery demand. China produced 224 tonnes of gold in 2005. One association official reached by Reuters said the association figures were actual consumption.
Rising gold prices since the beginning of the year had restrained sales of gold jewellery, but gold bars have been selling well as more people were interested in investing in gold, Xinhua cited Cheng as telling a conference. World gold prices hit a 25-year high in May. China was one of only a handful of countries that have increased gold consumption this year. Fourth-quarter sales are typically the highest as wealthy Chinese buy gold bars, jewellery and mementos ahead of the Lunar New Year.
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