BEIJING: China has discovered gold reserves worth 600 billion yuan ($82.9 billion) in the central Hunan province, according to state media outlet Xinhua.
China holds the world’s largest gold reserves and remains the biggest producer, contributing approximately 10% of global gold output in 2023, as per data from the World Gold Council.
In the first three quarters of 2023, China consumed 741.732 metric tons of gold, while its output stood at 268.068 tons, highlighting its reliance on imports to meet domestic demand despite possessing the world’s largest gold reserves.
The Hunan Academy of Geology uncovered over 40 gold ore veins at depths exceeding 2,000 meters in Pingjiang County. These veins contained a total of 300.2 tons of gold resources within the core exploration area, with the highest grade reaching 138 grams per metric ton, Xinhua reported.
According to forecasts, there could be more than 1,000 tons of gold reserves at depths greater than 3,000 meters. This discovery further solidifies China’s position as the holder of the world’s largest gold reserves, aided by advanced exploration techniques such as 3D geological modelling.
Read More: Gold gains on safe-haven demand
Gold prices rose on 28 Nov 2024, as geopolitical uncertainty and trade war concerns boosted safe-haven demand, with low trading volumes expected as U.S. markets are closed for the Thanksgiving holiday.
Spot gold was up 0.2% to $2,641.79 per ounce at 10:07 a.m. ET (1507 GMT). U.S. gold futures were steady at $2,642.00. Bullion posted its deepest one-day decline in more than five months earlier on Monday.
A line chart titled “Spot gold price in USD per oz” that tracks the metric over time.
Geopolitical risks remain elevated with ongoing war in Russia-Ukraine, and while an Israel-Hezbollah ceasefire is in force, Israel’s contingencies for retaliation keep tensions alive, said Aneeka Gupta, director of macroeconomic research at WisdomTree.
US President-elect Donald Trump’s pledge to hit Canada and Mexico with tariffs was also having an effect, she added. “It did increase a bit of concern on the possible repercussions from these two countries. So that remains an important support factor for gold.”
However, Trump’s tariff plans are also seen as potential drivers of inflation, which could prompt the U.S. Federal Reserve to slow its interest rate cutting, potentially limiting any further rally in non-yielding bullion.
Data on Wednesday showed progress in lowering U.S. inflation appears to have stalled in the past months, suggesting the Fed may proceed cautiously with further rate cuts.
Markets now see a 70% chance of a quarter-point rate cut in December. Gold tends to do well in a lower interest rate environment.
Following a Republican clean sweep in the Nov. 5 U.S. election, bullion saw a sharp sell-off.
“After that sell-off … there has been some revived investor interest that has given some support, while weaker-handed holders were flushed out,” said StoneX analyst Rhona O’Connell.
source https://arynews.tv/worlds-largest-gold-reserves-discovered-in-china/
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