COMEX Gold futures came off a one week low but remained stressed on worries over central bank demand. The World Gold Council (WGC) noted in a latest update that Gold buying by central banks slowed sharply in 2020, almost 60% lower at 273 tonnes or t. Q4 saw a return to net buying: global official reserves grew by 44.8t during the quarter, more than reversing the 6.5t of net sales from Q3. COMEX Gold currently trades down 0.42% at $1841 per ounce. MCX Gold futures are trading at Rs. at Rs. 48734 per 10 grams, down 0.27% on the day. The US dollar gold price returned 25% in 2020 supported by investor demand. Inflows into global gold ETFs reached an annual record of 877.1t (US$47.9bn). Increased uncertainty and the policy response to the pandemic likely fuelled consistent inflows through October, before a recovery in sentiment and a drop in the gold price likely led to 130t of outflows in Q4. Demand for gold bars and coins grew 10% in Q4. A recovery in China and India in the second half of 2020 added to continued strength in Western markets to lift annual demand to 896.1t (+3%). 2020 marked a record low for gold jewellery demand. Despite a quarterly recovery in Q4, demand was unable to overcome the continued challenges presented by COVID-19. Powered by Commodity Insights
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