World Gold Council: Gold Daily Trading Volume Outstripped 2021 Average

SEATTLE (Scrap Monster):  The latest report published by the World Gold Council (WGC) says that daily trading volumes of gold in the opening month of the year exceeded the 2021 average. The greater OTC and COMEX volumes contributed to the rise. The volumes surged higher to $139 billion per day in January 2022.

According to the report, the physical gold demand in China made strong start to the current year. The average trading volume of the Au9999 contract surged higher by 39% year-on-year. This was mainly driven by strong seasonal demand ahead of the Chinese New Year. Meantime, the holdings by local gold ETF investors witnessed decline by 8t during the month.

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The return of Covid-19 restrictions and reduced number of auspicious wedding dates resulted in soft retail demand in India. The gold ETFs recorded outflows of 1 tonne in January, mainly driven by government bond yields and expectations of a more hawkish Fed stance.

The sales of American Eagle gold coins were the third highest on record in during the month. The sales amounted to 181,500 oz.

Gold prices have regained some ground in the first few days of February. A meaningful short-term movement in gold in either direction depends on interest and inflation rates, said the WGC report.