World Gold Council: Retail Gold Demand Picked Up in 2021

SEATTLE (Scrap Monster): The most recent Gold Market Commentary published by the World Gold Council (WGC) suggests that retail gold demand has picked up in 2021. The consumer demand for gold has been witnessing notable comeback since the beginning of the year.

For instance, in India, the retail demand began to rise in January and gathered further momentum during the month of February, mainly on account of reduction in gold import duty, falling gold price and an appreciating Indian rupee. The lower gold prices led to increased wedding jewellery purchases. Also, retail investors took best use of the lower prices to make an entry into gold.

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The retail demand for small gold bars and coins gained momentum during the month. The further fall in gold prices sustained the momentum until mid-March. However, the demand witnessed slowdown towards the end of March, as gold prices began to see gradual increase amid sudden spike in Covid-19 cases in many states across the country.

The Chinese markets reported boosted gold consumption during the initial two months of the year. The sales of all jewellery categories spiked 161% year-on-year, mainly triggered by Chinese New Year holidays and the dip in local gold prices. The Chinese gold-backed ETFs too reported increased investor participation.