Gold consumption jumps more than 50pc in China In April, gold witnessed its biggest two-day fall in 30 years. The metal has recovered after dropping below $1,200 in June, but is still subject to volatile trading and negative sentiment as a recovering US economy stirs worries of a scale-back in the Federal Reserve's stimulus measures. "China's demand in April and May was unmatched," said one Shanghai-based trader. They bought more than anyone and were consistent buyers even after prices recovered a little. China's gold demand could hit a record 1,000 tonnes this year and will overtake India, the World Gold Council said last month. India's consumption this year is expected to be lower than last year's 860 tonnes as the government is trying to curb imports and reduce its trade deficit. The Chinese government does not release data on gold consumption or imports. Investors rely on data from trade groups such as the CGA and import numbers from Hong Kong - a key supplier to China - to gauge demand. All signs have been pointing towards China overtaking India. Their demand in the second half may not be this high, but they are still way ahead of India," said the Shanghai-based trader. Chinese consumers would like to see more stability in prices and not just lower prices, which is why Chinese demand is subdued currently, analysts and traders said. The CGA also said output in China, the world's biggest gold producer, reached 192.82 tonnes in the first half, up 9 percent from a year ago.