21
Saturday
May 2022
5:55 AM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Global gold demand rises 10% to 4,021 tonnes in 2021: WGC
 
Mumbai: Global gold demand rose 10 per cent to 4,021.3 tonnes in 2021 on account of a massive 50 per cent surge in year-on-year demand -- a 10-quarter high -- during the December quarter, a report by the World Gold Council (WGC) said.

The overall gold demand during 2020, which was impacted following Covid-19 related disruptions, stood at 3,658.8 tonnes, the WGC said in its 'Gold Demand Trends 2021' Report.

"The demand for the yellow metal was mainly driven by Central bank buying during the fourth quarter of 2021, recovery in jewellery consumption, mainly in India and China," WGC Regional CEO, India, Somasundaram PR told PTI.

Demand for gold reached 1,146.8 tonnes in the October-December quarter in 2021, its highest quarterly level since the second quarter in 2019 and an increase of almost 50 per cent year-on-year, according to WGC data. The overall demand during Q4 2020 stood at 768.3 tonnes.

The last quarter of 2021 witnessed 31 per cent growth in gold bar and coin demand to an 8-year high of 1,180 tonnes as retail investors sought a safe haven on the back of rising inflation and ongoing economic uncertainty caused by the pandemic, it noted.

Meanwhile, the WGC data reported outflows of 173 tonnes in 2021 from gold-backed ETFs (electronic traded funds) as some more tactical investors reduced hedges early in the year amid the Covid-19 vaccine rollouts, while rising interest rates made holding gold more expensive.

Nevertheless, these outflows represent only a fraction of the 2,200 tonnes that gold ETFs have accumulated over the preceding five years, demonstrating the continuing importance investors place on including gold in their portfolio, said the report.

Turning to annual consumer demand, the jewellery sector rebounded to match 2019's pre-pandemic total of 2,124 tonnes mainly aided by a strong fourth quarter when demand reached its highest level since second quarter of 2013, when the price of gold was 25 per cent lower than the average comparative price in 2021.

Further, the report revealed that central banks were net purchasers of gold for the 12th consecutive year, adding 463 tonnes to their holdings, which was 82 per cent higher than 2020.

A diverse group of central banks from both emerging and developed markets added to their gold reserves, lifting the global total to a near 30-year high, it added.

The use of gold in the technology sector in 2021 increased 9 per cent to reach a three-year high of 330 tonnes, the report stated adding that while technology demand is comparatively smaller than other sectors, its uses are far reaching and prevalent in a variety of electronics, from mobile devices to the sophisticated James Webb telescope recently put in orbit.

WGC expects gold to face similar dynamics in 2022 to those seen last year, with competing forces supporting and curtailing its performance.

Gold prices in the near term will likely react to real rates, which in turn will respond to the speed at which global central banks tighten monetary policy and their effectiveness in controlling inflation, said the report.

In addition, the report said that gold is likely to continue to find support from consumer and central bank demand.

"Gold's performance this year truly underscored the value of its unique dual nature and the diverse demand drivers. On the investment side, the tug of war between persistent inflation and rising rates created a mixed picture for demand. Increasing rates fuelled a risk-on appetite among some investors, reflected in ETF outflows," WGC Senior Analyst EMEA Louise Street said.

On the other hand, she said, a search for safe haven assets led to a rise in gold bar and coin purchases, buoyed by central bank buying.

"Declines in ETFs were offset by demand growth in other sectors. Jewellery reached its highest level in nearly a decade as key markets like China and India regained economic vibrancy. We expect similar dynamics to influence gold's performance in 2022 with demand drivers fluctuating according to the relative dominance of key economic variables," she noted.

How central banks deal with persistent high levels of inflation will be a key factor for institutional and retail demand in 2022, she observed.

"Meanwhile, the jewellery market's current strength could be hampered if new Covid-19 variants restrict consumer access again or continue if the economic recovery endures, she added.


Mcap of eight of top-10 firms tumbles over Rs 2.48 lakh cr; Reliance biggest drag
Sensex plunges nearly 483 pts on sell-off in IT, banking stocks
MSME policy, access to global market on agenda of key meeting called by govt
Petrol, diesel prices hiked by 80 paise; rates up by Rs 8 in less than two weeks
Rupee rises 4 paise to end at 76.35 against US dollar
EPFO cuts interest rates to 4 decades low of 8.1 per cent
Axis Bank commits USD 150 mn loan to healthcare sector
New policy to cut green hydrogen cost by 40-50 pc: IOC
Saudi Arabia gives 4% of Aramco to investment fund
SBI expects to recover Rs 8,000 cr from written-off accounts in FY22
Govt contained retail inflation at 6.2 pc despite biggest contraction in economy: Sitharaman
Reliance to buy stake in EV technology firm Altigreen
Sensex climbs over 400 points post RBI policy outcome; Nifty crosses 17,580 points
JK Paper shares jump over 4 pc after earnings announcement
Universal Robots reports record annual revenue of over $300m
Passenger vehicle retail sales 10 pc in Jan as chip shortage continues: FADA
InterGlobe Aviation shares rally over 9 pc on Q3 profit
SBI lines up 6 NPA accounts for sale to ARCs to recover dues of Rs 406 cr
Airtel to spend Rs 1.17 lakh cr on various businesses with subsidiaries over a period of 5 years
Electric bicycle 'Urbansport' launched by VAAN Electric Moto
KERALA NEWS
Kerala records 558 fresh COVID-19 cases, 74 deaths
 Thiruvananthapuram: Kerala on Thursday recorded 558 fresh infections which raised the total to 65,29  
Kerala records 596 fresh COVID-19 cases, 24 deaths
1,088 COVID-19 cases, 31 deaths in Kerala
covid-19: Kerala reports 5,427 cases on Sunday, active cases drop to 66K
INTERNATIONAL NEWS
PM Modi to visit Lumbini in Nepal on Buddha Purnima
 Kathmandu: Prime Minister Narendra Modi will travel to Nepal on May 16 for a brief visit to Lumbini,
Police in North Macedonia to deport 44 migrants to Greece
Nomination papers of Sharif, Qureshi approved by NA
Russian aggression targets Europe: Zelenskyy
NATIONAL NEWS
Mundka fire: Building owner arrested
 New Delhi: The owner of a building in outer Delhi's Mundka where a massive fire claimed the lives of
Adani says not in RS race, turf open in Andhra
Protests In Andhra Pradesh As Jagan Reddy's New Cabinet Takes Oath
"Hate, Violence Weakening Country": Rahul Gandhi
Untitled Page
Rashtra Deepika LTD
Copyright @ 2021 , Rashtra Deepika Ltd.