WGC Announced Gold Mid-Year Outlook 2021
The robustness of the economic recovery will also play a key role, WGC noted.
SEATTLE (Scrap Monster): The World Gold Council (WGC) announced publication of its Gold Mid-Year Outlook 2021 report. The report stated that there exists risks for gold, but there are opportunities as well.
Based on analysis using the WGC web-based valuation tool, gold still enjoys upside potential for implied hypothetical performance during the second half of the current year, though in the midst of challenges.
The performance of gold will likely be heavily influenced by the changes in interest rates as well as success of Covid-19 vaccination campaigns. For instance, a further rise in interest rates could possibly create headwinds for the yellow metal. The robustness of the economic recovery will also play a key role, WGC noted.
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According to WGC report, private individuals as well as institutional investors will find it increasingly essential to hold assets such as gold for downside protection and diversification of their asset portfolio. The central banks too are likely to continue their increased allocation to gold. Collectively, the above factors may lead to net gold purchases in 2021, possibly higher than the levels witnessed during the previous year.
The global economic recovery, coupled with recent pullback in gold prices should augur well for gold’s consumer demand. While government stimulus measures paint a positive picture for the gold market in China, the newly detected presence of new variants of the Covid-19 virus continues to impact Indian market.