Premier eFinance: China has produced 132.02 tons of gold until May this year.

July 13, 2011 - PRLog -- Premier eFinance research has revealed that the globe’s biggest gold producer, China produced 132.02 metric tons of gold in the first five months of this year, 3.67% higher year-on-year.

China’s Ministry of Industry and Information Technology (MIIT) announced that out of the total, 109.13 metric tons came from ferrous mines, a 4.55% increase year-on-year.

Non-ferrous mines contributed 22.89 metric tons, a slight drop of 0.3% year-on-year, the statistics said.

China became the world's largest gold producer in 2007, and Premier eFinance data indicates the country’s gold output reached 340.876 metric tons in 2010.

International gold prices have shot up since February, reaching $1,570 per ounce in late April, with the current prices hovering around $1,545 an ounce.

According to a report issued Tuesday by GFMS, a global precious metals consultancy firm, the price of gold should reach $1,600 in the second half of the year as demand continues to increase.

China and India lead the globe in gold demand with the majority of India’s gold being bought for jewelry.

The report said demand remains the key element in affecting gold prices, as developed economies around the world have kept interest rates low and investors remain cautious about global currency investment in light of the sovereign debt crisis.

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