SHANGHAI: China’s gold consumption rose 28.7% in the July-September period from the previous quarter, the China Gold Association said on Tuesday, supported by a stabilising economy and a rapid recovery of the wedding market.

Consumption in China in the first nine months of 2020 stood at 548.09 tonnes, down 28.7% year on year, the association said on its website, which implies third-quarter consumption was 224.8 tonnes, down 8.2% from a year earlier.

Demand in the world’s top gold user had been hit early in the year as coronavirus-led lockdowns and high prices for the precious metal kept retail buyers at home.

Spot gold prices gained around 24% in the first nine months of 2020, but have eased about 8% from an all-time high of $2072.50 notched on Aug. 7.

Consumption has gradually recovered since the second quarter, fuelled by Beijing’s stimulus measures.

“With the sustained and stable recovery of the domestic economy and the rapid recovery of the wedding market, gold consumption has picked up significantly,” the association said.

Aside from gold jewelleries presented as common gifts at Chinese weddings, investments in other golden products also rose due to price fluctuations and loose monetary policies.

Sales of gold bars and coins in the third quarter increased by 66.73% from the previous quarter, the association said.

Data released on Tuesday also showed China’s January-September gold output continued to decline.

Gold production using domestic raw materials fell 4.5% year-on-year to 262.93 tonnes in the first nine months, implying third-quarter output of 92.86 tonnes, down 1.9% from a year earlier.—Reuters