Weekly Gold Review: Gold Ends Just Under $1900 Mark After Recording Heavy Gains

26 Feb 2022 , 02:19 PM

Gold soared well above $1900 per ounce as safe haven buying got a boost amid heavy correction in risky assets. Equities tanked amid growing fears of a full-scale Russian invasion of Ukraine. Soaring inflation also pushed up Gold to near one year high near $1980 per ounce. However, the metal eased from these levels as equities cut losses and finally closed under $1900 mark on reports that Russia is prepared to send a delegation to Belarusian capital Minsk for talks about. MCX Gold futures hit near Rs 52800 per 10 grams before pulling back and ended around Rs 50300 mark. Meanwhile, the World Gold Council (WGC) stated in a latest update that in 2021, the 56% y-o-y rise in Chinas gold consumption marked a strong comeback from 2020. And Chinese gold demand will likely remain strong in 2022. WGCs quantitative analysis supports this view, despite concerns around a potential slowdown in Chinas economic growth. Additionally, there are qualitative factors that might provide further support, including: an increasing interest in gold jewellery among young consumers, greater pricing transparency, and the endeavour of local commercial banks to sell physical gold products.

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