Gold Investment Demand to Struggle in 2022, Says World Gold Council

SEATTLE (Scrap Monster): The World Gold Council (WGC) provided its outlook for gold market in 2022. The gold investment demand may struggle during the year. However, the consumer demand is expected to hold strong, said the latest released WGC Demand Trends Report.

According to WGC, investment is likely to face challenges from rising rates. The recent surge in bar and coin demand may act as a additional headwind to further growth. However, investment demand may receive support from persistently high inflation and equity market pullbacks.

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The good underlying economic growth coupled with weaker price environment may provide good support to consumer demand. Meantime, central banks across the globe may witness slowdown in buying activity, in comparison with 2021.

The ramp up at various mines and fewer disruptions due to Covid-19 will result in growth in mine supply. However, the total supply is likely to remain more or less unchanged, due to anticipated fall in recycling. The demand for gold from technology sector is expected to show further modest rise in 2022.

WGC foresees rangebound demand for bar and coins, positive trend in central bank demand and a weak demand for ETFs during the current year.