CHINA’S demand for gold bars fell nearly 44 percent in the first quarter of 2014 from year ago, even as total gold consumption edged up about 0.8 percent during this period, the China Gold Association said yesterday.

    Total gold consumption was 322.99 tons in the January-March period, up 2.45 tons from year ago. Out of this total, gold jewelry purchases jumped 30.2 percent from year ago to 232.53 tons, but consumption of gold bars dropped 43.56 percent to 67.95 tons, the association said in a statement on its website.

    The slump in demand for gold bars, commonly used as either gifts or for investment, comes as a fall in the price of gold had hurt confidence amongst investors, Song Xin, president of the association, was quoted as saying in a report by Xinhua.

    Analysts cited by Xinhua said a crackdown on corruption launched by the government and stricter rules on the types of gifts government officials can receive has also hurt demand for gold bars.

    China’s total gold production in the first quarter rose 5.88 percent from year ago to 79.147 tons, the association said.

    The World Gold Council expects China’s gold demand to maintain a growth rate of between 20-25 percent in the next four years. (SD-Agencies)