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Gold September 30, 2020 08:10:24 PM

Refinitiv Foresees Robust Demand for Gold as a Safe-Haven Asset

Paul Ploumis
ScrapMonster Author
Refinitiv foresees 3% surge in total gold supply during the current year.

Refinitiv Foresees Robust Demand for Gold as a Safe-Haven Asset

SEATTLE (Scrap Monster): Refinitiv- the global provider of financial market data sees continuation of strong demand for gold as a safe-haven asset until the global economy shows material recovery.

According to Debajit Saha, Senior Metals Analyst at Refinitiv, central banks across the globe have been announcing various stimulus measures to counter the economic slowdown caused by Covid-19 pandemic. The interest rates have been lowered to zero or even negative levels, with the aim of creating demand in the financial system. These measures may play key role in bringing back the economy on to recovery path. However, gold is likely to see strong demand until the economy reports solid growth, he said.

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Refinitiv foresees 3% surge in total gold supply during the current year. The rise in scrap supply is likely to offset decline in mine supply. The impact of the pandemic on physical gold demand is expected to dissipate over the course of the year. The retail investment demand for gold will see huge surge, whereas the gold jewellery demand is predicted to fall sharply by over 40%.

In the short term, gold prices may see further losses, mainly impacted by the U.S. dollar movements. Over the next few months, gold may rebound to touch higher levels, Refinitiv research report said.

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