Gold demand picks up, but can it sustain?
While physical demand for gold can be expected to pick up in 2021 both from consumers and central banks, gold ETFs pose a risk to a bullish scenario
July 30, 2021 / 10:02 AM IST
Gold demand globally, including in India, has recovered smartly in the June 2021 quarter, mirroring the overall recovery in asset markets. However, unlike other sectors, which saw mainly consumption-driven growth, other factors are driving gold demand.
The World Gold Council (WGC) report, highlighting the performance of gold during the quarter, mentions gold was bought by retail, investors, and central banks during the quarter, which helped stabilise its price.
But strong consumer demand recovery and Q2 gold ETF inflows were...