The association said the total industrial output for China's gold enterprises was 22.15 billion yuan at the current price level,up 22 percent year on year.

China's produced 106.028 tons of gold, an increase of 6.314 tons or 6.33 percent over the same period last year, Shanghai Securities News reported Monday.

Lu Wenyuan, vice chairman of the China Gold Association indicated that rocketing prices on the international market was the main reason for higher gold industry profits, but said growth might slow in the second semester.

The high demand for gold has pushed up prices. China's gold demand rose 2 percent in the first quarter to 68.4 tons, according to statistics issued by the World Gold Committee.

Analysts with Antaike Information Development predicted that, because of the fall in value of the U.S. dollar and the constant rise in international oil prices, the domestic and international gold price would continue to rise. Some analysts are betting on a new peak in the international gold price in the second half of the year.

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