Global Gold Demand Seen to Rebound From 11-Year Low

Global gold demand is set to recover this year, after slumping to the lowest in more than a decade in 2020, according to the World Gold Council.

With bullion prices climbing to an all-time high and pandemic lockdowns stifling consumption, demand for gold jewelry fell to the lowest on record last year, the WGC said in a report Thursday. That decline was led by the key Indian and Chinese markets, which experienced historically weak sales.

Now China’s economic recovery is supporting a rebound in demand, said Louise Street, the WGC’s senior markets analyst.

The outlook partly depends on investment demand, which surged to a record last year as inflows into exchange-traded funds more than doubled. That helped gold to climb by the most in a decade in 2020. Prices have declined this year as improving economic prospects drove Treasury yields higher, denting the appeal of the haven asset.

Global Gold Demand Seen to Rebound From 11-Year Low

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