Chinese gold production rose significantly in H1 2015

According to reports from a Chinese news agency, which are based on data from the China Gold Association, China produced 228.7 tons of gold in the first half of the year, which is 8.4% more than in the same period last year. As such, China is consolidating its position as the world's largest gold producer, and may even surpass last year's record level. 

The figures reveals, gold demand in the first half of the year fell only by 1.4% to 561.4 tons, which is significantly less than the decrease in imports via Hong Kong would imply, notes Commerzbank. In other words, stocks were reduced between January and June, which means that stocks now need to be replenished. This could result in higher Chinese gold imports in the second half of the year, which should in turn lend support to the gold price, argues Commerzbank.