COMEX Gold futures saw a sharp reversal last week, bouncing from a two-week low to approach $1790 per ounce but broad demand worries stayed in place as Indias daily Covid-19 cases hit 4 lakh mark. MCX Gold cracked lower after breaking below Rs 47000 per 10 grams. Overall global demand scenario stayed lax too. The World Gold Council (WGC) stated in its latest Gold Demand Trends update last week that Q1 2021 global gold demand (excluding OTC) was 815.7t, virtually on a par with Q4 2020, but down 23% compared with Q1 2020. While the average gold price in Q1 was 13% higher y-o-y, it declined by 4% q-o-q. Growth in consumer demand was offset by strong outflows from gold-backed ETFs (gold ETFs), which lost 177.9 in Q1 as higher interest rates and a downward price trend weighed on investor sentiment. Total supply of gold fell 4% y-o-y in Q1. Mine production growth was outweighed by a fall in recycling, largely in response to weaker gold prices.
Powered by Commodity Insights