China's Gold Production and Consumption

China, the world's largest gold producer, accounted for around 10% of global output in 2023, according to data from the World Gold Council. The country consumed 741.732 metric tons of gold in the first three quarters of this year, while its output was 268.068 tons, indicating a significant reliance on imports to meet domestic demand.

Discovery of Gold Reserves in Hunan

The Hunan Academy of Geology has made a groundbreaking discovery in Pingjiang county. They found more than 40 gold ore veins at a depth of over 2,000 meters, with a total of 300.2 tons of gold resources in the core exploration area. The highest grade discovered was an impressive 138 grams per metric ton, as reported by Xinhua on Thursday.

The group forecasts that there are over 1,000 tons of gold reserves at depths exceeding 3,000 meters, according to Xinhua.

Impact on Global Gold Market

Gold reserves generally refer to the economically extractable part of a resource. The recent rally in gold prices this year has been driven by rising geopolitical tensions globally. The most active gold futures contract on the Shanghai Futures Exchange reached an all-time high of 639.48 yuan per gram on October 30th. It closed Thursday's daytime trading 1.16% higher at 617.7 yuan a gram, marking a 27.8% increase since the beginning of the year.