Refinitive GFMS Foresees Gold Prices Hitting $1,700 Per Oz

The report predicts average gold price of $1,558 per ounce during the current year.

SEATTLE (Scrap Monster):  The Annual Gold Survey Report published by Refinitiv GFMS noted that elevated prices in domestic currency resulted in huge drop in investment demand for gold in India.

The report said that gold ETFs were primarily responsible for the robust growth in global gold demand in the second half of 2019. On the contrary, jewellery, coin and bar demand recorded sharp declines. The retail gold demand recorded 17% decline, with gold bar investment and coin demand witnessing year-on-year declines. The fabrication demand from jewellery sector was down 17%.

The domestic gold consumption reported huge decline in India. The supply for domestic consumption plunged by almost 86% in Q3 ’19, primarily on account of prevailing high import duty structure and also due to surge in gold prices in domestic currency terms. The Indian gold demand for jewellery fabrication saw 36% decline, due to lack of demand.

According to Refinitiv GFMS, gold prices could test $1,700 per ounce before the end of 2020, driven by political and economic uncertainties around the world and central bank’s monetary policy. The report predicts average gold price of $1,558 per ounce during the current year. 

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