WGC Report Presents Regional Insights into Gold Market Trends

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) provides regional insights into gold market trends.

The wholesale physical gold demand weakened during the month of February this year, following robust retail gold consumption during the Chinese New Year holidays in the beginning of the month. The WGC report cited replenishing of stocks by manufacturers ahead of the holidays and fewer working days in comparison with the prior month as the key reasons for the same.

The Chinese local gold premium declined during the month. At the same time, local gold ETF holdings too witnessed significant decline. The monthly outflow was mainly triggered by profit taking by investors following high gold prices.

In India, the retail demand weakened further in February. It must be noted that the demand had remained soft in the opening month of the year as well. The sudden spike in gold prices following the Russian invasion of Ukraine forced many customers to postpone their gold purchases during the second half of February 2022. The discounts on gold in the country widened further towards end of the month, as compared with small premiums in the initial half.

Meantime, the Indian gold ETFs witnessed outflows of 0.5t in February. The total gold ETF holdings declined to 36.2t by the end of the month.

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