Wold Gold Council Released 2021 Gold Outlook Report

SEATTLE (Scrap Monster): The World Gold Council (WGC) published new report that outlines the Council’s outlook for the yellow metal in 2021.

According to the report, gold investment is likely to remain well supported. At the same time, gold consumption is expected to benefit from economic recovery, especially in emerging markets.

WGC noted that gold outperformed major assets during the previous year. The surge in gold prices was led by a combination of several factors including high risk environment and low interest rates. The LBMA Gold Price, which had touched record high during the month of August, settled at lower levels during the rest of the year. The gold prices appreciated by 24.6% during the year.

Looking into 2021, many emerging markets are likely to witness economic growth. The anticipated strong economic recovery in China is likely to drive gold consumption in the country. The Indian gold market, which has already recovered from Q2 lows, is likely to see robust growth during the current year. However, consumer demand is expected to remain subdued in other regions, WGC report said.

The central bank demand is also here to stay. As in 2020, the world central banks are likely to remain as net purchasers. Also, WGC foresees recovery in mine production in 2021, as it sees fewer mine stoppages.

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