Four Key Factors affecting the gold prices in the coming year. Before the Covid-19 pandemic and the Ukraine war, gold was already on the rise, and today, gold shows its actual potential once again, thanks to a number of significant drivers that are currently in play. The four main trends that...

INDIA/CHINA/GOLD India can overtake China as the largest gold consumer this year. Since 2012, China has been the largest consumer of gold. Last year, China’s gold demand bounced back from 2020’s nine-year low by 55% to 993 t (source: World Gold Council). India has been narrowly behind China,...

Why central banks buy gold? Central banks are major gold holders and gold plays a key role in the management of central banks’ reserves. For decades, gold has been an important component of nations’ financial re-serves, and its appeal shows no signs of waning, with central banks set to be net...

Investors/Gold/Crypto Risk Retail investors were enthusiastic buyers of cryptocurrencies last year. A global study by Hall Partners shows that cryptos were one of the most popular investments in 2021, with 31% of respondents investing in them over the first 10 months of the year. These...

Gold’s April 2022 performance! Despite equities and bonds falling amid spiking volatility, gold fell slightly in April as rates and the US dollar shot higher. Inflows into gold ETFs totalled 39t (US$2.5bn) in April, less than 2% away from all-time tonnage highs, while US Mint coin sales were...

REASONS FOR INVESTING IN GOLD? Investors can invest in gold through: - exchange-traded funds (ETFs), - buying stock in gold miners and associated companies, and - buying a physical product. These investors have as many reasons for investing in the metal as they do methods to make...

Strong Start for Gold market in 2022! Q1 gold demand was 34% above Q1 2021, driven by strong ETF inflows. In a quarter that saw the US dollar gold price rise by 8%, gold demand (excluding OTC) increased 34% y-o-y to 1,234t – the highest since Q4 2018 and 19% above the five-year average of...

Australian super fund's portfolio and Gold! Geopolitical uncertainty, inflationary concerns and rising interest rates in key markets have impacted global financial markets in the first quarter. Against this backdrop, gold shone in Q1, registering a 4% gain in Australian dollars and the...

Gold’s performance amid current global economic environment! Earlier this month, gold surpassed US$2,000 per ounce, nearly to reach the previous high record in 2020. This time, though, it was driven by continued concerns about the war in Ukraine, rising commodity prices, and, more broadly,...

Gold predictions 2022 - Gold price dropped from $1,783.90 an ounce at the end of October to $1,763.90 on 3rd November, as the US Federal Reserve indicated in a statement that it would “begin reducing the monthly pace of its net asset purchases by $10bn...

INFLUENCE ON GOLD: Geopolitical events can give gold price a short-term boost but the effect can quickly wear off. Gold can benefit while geopolitical tensions are high and then it’s seen as a safe haven. As tensions built between Russia, US and EU over Ukraine, the gold price has moved $100/oz...

Inflation/Interest Rates/Gold! In the 70s the Fed raised interest rates to 20% to fight inflation that was running about 10%. The ‘70s and ‘80s saw excessive consumer and producer price increases but no housing nor equities inflation. During the 90s there was a stock market bubble...

Market swings, rising yields but stable Gold. First, Gold was marginally down in January, but rising nominal yields, a stronger dollar, and a more hawkish than expected Fed statement were the primary headwinds for gold during the month. Global gold ETF inflows of 46t were the highest since...

2021 Gold Demand Report ETF outflows were the only exception to robust gold demand recovery in 2021 otherwise annual demand recovered across virtually all sectors. 2021 gold demand (excluding OTC) increased to 4,021t, propelled by Q4 demand which jumped almost 50% to a 10-quarter high....

Gold’s Relevance as strategic asset in 2022! Gold benefits from diverse sources of demand: - as an investment, - a reserve asset, - jewellery, - a technology component - it is highly liquid, - no one’s liability, - carries no credit risk, and - is scarce, historically preserving...

Outlook of Commodities in 2022! Real rates remain low despite potential rate hikes. Gold may face similar dynamics in 2022 to those of last year, as competing forces support and curtail its performance. Near term, the gold price will likely react to real rates in response to the speed at which...

HIGHLIGHTS 2021 Physically backed gold ETFs saw global outflows of 173 tonnes (t) (-US$9.1bn, -4.0% AUM) in 2021. Collective gold holdings were down 5% to 3,570t for the year, while assets under management (AUM) in value terms dropped 9% to US$209bn as net outflows were compounded by a 4%...

Gold market analysis on November 2021: Based on the LBMA reference price, gold increased 2% in November, gaining early in the month before giving up most of its gains in the following weeks. Gold’s performance was influenced by weaker equities and commodities, lower rates, and the strength of...

Gold strengthened by increased appetite for less liquid investments! Global portfolio composition continues to shift with larger allocations to alternatives. Many of these alternative investments have previously helped portfolio performance but are less liquid than traditional investments....

The overvalued Indian equity market could represent an opportunity for gold investors! India’s equity market has outperformed major equity markets in 2021, triggered by signs of eco-nomic recovery and an accommodative monetary policy from the Reserve Bank of India (RBI). On 26 November the...