Gold consumption in China reached 523.54 metric tons during the first half of 2019, down 3.27 percent year-on-year, with the country closing outdated production facilities and optimizing industrial structures, according to the China Gold Association.

Consumption in the form of gold bars fell 17.29 percent year-on-year to 110.51 tons during the first half of this year, while consumption in gold coins dropped 29.27 percent year-on-year to 2.9 tons.

The use of gold for industrial purposes fell 0.6 percent year-on-year to 51.36 tons, the association said on Friday.

Demand for domestic gold jewelry has driven the global gold industry for some time, according to the association.

Consumption in the jewelry sector increased steadily to reach 358.77 tons in the first six months, up around 1.97 percent year-on-year, boosted by better designs and more variety, together with higher added value, said the association.

According to the association, China's gold output dropped by 5.05 percent year-on-year in the first half this year, reaching 180.68 tons, as a result of miners' production cuts, suspension of production due to environmental and technical issues, and upgrading production lines in regions such as Henan and Inner Mongolia.