Budget News

Weekly Gold Review: COMEX Gold Cuts Losses On Good Demand Trends
January 29,2022 12:56
COMEX Gold tanked as a slide under $1800 per ounce mark extended in the week gone by. The dollar index soared well above 97 mark and COMEX Gold has dropped, testing its one month low of $1780 per ounce. However, the metal cut losses on strong cues from demand supply figures, bouncing above $1790 per ounce mark. The World Gold Council (WGC) stayed in its latest Gold Demand Trends update that the global annual Gold demand recovered across virtually all sectors with the notable exception being ETFs, which saw net annual outflows. Full year 2021 gold demand (excluding OTC) increased to 4,021 tonnes (t), up 10% compared to 2020. This was propelled by impressive Q4 demand which jumped almost 50% to a 10-quarter high. Gold jewellery fabrication staged a strong recovery in 2021. It grew 67% to 2,221t to meet the strong rebound in jewellery consumer demand, which increased 52% in 2021 to 2,124t, matching the 2019 total. This was in good part linked to Q4 demand, which – at 713t – saw the strongest quarterly jewellery consumption since Q2 2013.
WGC also noted that total Gold supply fell by 1% y-o-y in 2021, the second successive year of declines and the first consecutive fall in more than a decade. Although mine production increased to 3,561t, largely due to fewer pandemic interruptions, it was still slightly below its 2019 level. A sharp drop in recycling to 1,150t drove the y-o-y fall in overall total supply, despite consumers in virtually all markets being able to sell-back their old gold jewellery more easily. Local Gold futures will be eying cues from the upcoming budget as any change in import duties could affect the price action. MCX Gold futures fell under Rs 47500 per 10 grams mark following a deep slide in global prices before some recovery emerged in the counter.
Powered by Commodity Insights

OTHER NEWS SECTION

Related News

No Data Found

New Here?

One Of Us?

Budget News