China's become the largest gold producer in the worldwide since 2007. Gold is throughout the country, mainly concentrated in Shandong, Henan, Jiangxi, Fujian, Yunnan, etc. China also is the world's top consumer of gold - Chinese people love to store gold for keeping their value and love to wear the gold jewelry for adorning themselves.
Gold prices were lower on the London spot market on Wednesday, confusing some market participants who believed that an interest-rate cut in China and current market volatility should be benefiting the yellow metal.
Gold is holding above $1,100 support as U.S. rate hike expectations this year slowly shift to December from next month, said Lee. When those expectations were tilted towards September, bullion was closer to $1,000, he said.
Among the other precious metals, spot silver was trading down 0.9 per cent at $US14.530 an ounce and spot platinum was trading up 0.8 per cent at $US978 an ounce.
