According to the official data released at the 2024 China International Gold Conference forum on July 28, the domestic raw gold production in the first half of 2024 was 179.634 tons, an increase of 1.036 tons compared to the same period in 2023, a year-on-year increase of 0.58%. Among them, gold mineral production completed 141.496 tons, and non-ferrous by-product gold completed 38.138 tons. In addition, in the first half of 2024, imported raw materials produced 72.026 tons of gold, a year-on-year increase of 10.14%. If this part of imported raw materials is added, the national gold production will be 251.660 tons, a year-on-year increase of 3.14%.

In the first half of 2024, gold mining enterprises and large gold smelting enterprises seized the favorable opportunity of high gold prices, adjusted their production capacity structure, optimized production layout, maximized the use of gold mine resources, and achieved significant results. Large gold mines such as Sanshandao Gold Mine in Shandong, Zaozigou Gold Mine in Gansu, Bilhe Gold Mine in Inner Mongolia, and Duobaoshan Gold-Copper Mine in Heilongjiang all achieved a year-on-year increase in gold production of more than 10%. Shandong Humon Smelting Co., Ltd. accelerated the comprehensive recovery of complex gold concentrate with multiple elements, and its gold smelting production (including imported raw materials produced gold) increased significantly compared with the same period last year.

In the first half of 2024, although the gold price performed well, China's gold production did not increase as expected, mainly because the easy-to-mine resources in old mines gradually decreased, new mine construction faced deep well construction problems, and safety and environmental protection requirements continued to increase, causing some gold mining enterprises to reduce production, shut down for rectification or unable to continue production.

Large gold enterprises (groups) are the backbone of China's gold industry. In the first half of 2024, the domestic gold mined output was 67.851 tons, accounting for 47.95% of the national total. Enterprises such as Zijin Mining (02899), Shandong Gold (01787), and Chifeng Jilong Gold Mining (600988.SH) have achieved significant results in their 'going out' strategy. In the first half of 2024, the overseas mines of China's gold industry achieved a gold production output of 34.399 tons, a year-on-year increase of 19.00%.

In the first half of 2024, the national gold consumption was 523.753 tons, a decrease of 5.61% compared to the same period in 2023. Among them, gold jewelry consumption was 270.021 tons, a year-on-year decrease of 26.68%; gold bars and gold coins were 213.635 tons, a year-on-year increase of 46.02%; industrial and other gold consumption was 40.097 tons, a year-on-year decrease of 0.53%. In the first half of 2024, with the continuous refresh of historical highs in gold prices, the sales of gold jewelry and gold bars and coins presented a polarization trend: the consumption of gold jewelry with higher premiums decreased significantly, while the consumption of gold bars and coins with relatively lower premiums increased significantly. The high fluctuation of gold prices has increased the production and operation risks of gold processing and sales enterprises, reduced the purchases of wholesale and retail enterprises, and significantly reduced the processing volume of jewelry processing enterprises.

In the first half of 2024, the cumulative trading volume of all gold varieties on the Shanghai Gold Exchange was 0.0298 million tons (0.0149 million tons on one side), a year-on-year increase of 39.77%, and the cumulative turnover was 15.49 trillion yuan (7.74 trillion yuan on one side), a year-on-year increase of 68.48%. The cumulative trading volume of all gold varieties on the Shanghai Futures Exchange was 0.0801 million tons (0.0401 million tons on one side), a year-on-year increase of 34.74%, and the cumulative turnover was 35.67 trillion yuan (17.84 trillion yuan on one side), a year-on-year increase of 58.58%. In the first half of 2024, especially after March, the gold price rose quickly, and the trading volume increased significantly. Therefore, domestic gold on-exchange trading has taken market risk control measures. The Shanghai Gold Exchange issued a notice to increase the margin ratio and the limit of price fluctuation for gold deferred contracts, while the Shanghai Futures Exchange implemented trading limits on gold futures varieties and increased the handling fees for gold futures main contracts. In the first half of 2024, boosted by the rise in gold prices, the holding of domestic gold ETFs increased to 92.44 tons, an increase of 30.97 tons from the end of 2023, an increase of 50.38%, which is the highest value since the listing of domestic gold ETFs in July 2013.

At the Shanghai Lujiazui Forum in June this year, the China Banking and Insurance Regulatory Commission stated that it actively explores pilot investment of insurance funds in Shanghai Gold Exchange gold contracts and related products, releasing bullish signals that insurance funds are entering the gold investment market.

In the first half of 2024, geopolitical conflicts continued, global economic recovery was weak, inflation was high, unilateralism and protectionism were on the rise, the hedging and value preservation function of gold was revalued, and gold prices rose strongly, constantly refreshing historical highs. At the end of June, the London spot gold fixing price was $2330.90 per ounce, up 12.34% from $2074.90 per ounce at the beginning of the year, with an average price of $2202.91 per ounce in the first half of the year, up 14.05% from $1931.54 per ounce in the same period last year. The closing price of Au9999 gold at the Shanghai Gold Exchange at the end of June was 549.88 yuan/gram, up 14.37% from the opening price of 480.80 yuan/gram at the beginning of the year. The weighted average price in the first half of the year was 514.12 yuan/gram, up 18.98% from 432.09 yuan/gram in the same period last year.

In the first half of 2024, central banks of various countries continued to increase their holdings of gold, continuously increasing the share of gold in foreign exchange reserves. China increased its gold holdings by 28.93 tons, and as of the end of June, China's gold reserves were 2264.33 tons.