Demand for gold remains strong in China, helping to fuel expectation that the price of the metal will be above $1,800 an ounce.
Global capital markets specialist and best-selling author James Rickards says that the ongoing currency wars are a combination of deflationary and inflationary factors that could leave painful scars on the global economy.
China's gold output continued to rise, albeit at a slower pace, in the first five months of this year, according to official figures released Wednesday.
Mainland buyers resist the trappings of wealth
China produced 28.8 metric tons of gold in April, bringing total gold production in the first four months of the year to 109.6 tons, the Ministry of Industry and Information Technology said on Monday.
Gold-investment demand in China may gain more than 10 percent this year as buyers seek a haven from Europe's debt crisis.
Gold imports from Hong Kong by the Chinese mainland increased by 65 percent to hit a record high in April, advancing for a third straight month.
Chinese gold consumption rose 10 percent to a record 255.2 metric tons in the first quarter.
Gold declined for a fourth day in London and entered a so-called bear market as concern Greece will leave the euro boosted the dollar and cut the metal's appeal as an alternative asset.
The Ministry of Industry and Information Technology announced Friday that the country's gold output in the first three months of the year reached 80.8 tons.
The mainland's gold imports from Hong Kong climbed 59 percent in March, according to export data.
Zijin Mining Group Co, China's largest gold producer in terms of output, said Thursday that its net profits rose 18 percent year-on-year in 2011 due to rising gold prices.
Profits of Chinese gold producers surged 36.18 percent year-on-year to reach 1.93 billion yuan ($304.76 million) in January, data from the MIIT shows.
The China National Gold Group Corp (CNGGC) said Tuesday that it plans to pay 108.5 million yuan ($16.79 million) for a 51-percent stake in a Xinjiang-based gold company.
The price of gold is expected to hit $2,025 per ounce by the end of the year as the weakening global economy drives more funds into safe-haven investments, analysts from the investment bank UBS said on Thursday.
Gold production in northwest China's Xinjiang Uygur autonomous region reached a record-high volume of 12.1 tons in 2011.
Rising incomes in China have resulted in a surge in demand for gold jewelry and other luxury goods.
The World Gold Council said Thursday China's gold demand last year reached 769.8 tons, representing a rise of 20 percent year-on-year.
China, the largest producer of gold, may also become the biggest consumer of the metal in 2012, overtaking India in that regard, the World Gold Council said on Thursday.
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