Loading price data
Scrap Monster
Access the
Platform
ScrapMonster has become North America's largest scrap trading platform with 97,245 members and the trusted source for scrap prices, news, and information. Join Today!
Gold May 20, 2022 08:40:58 PM

WGC Answers to Queries on Gold’s Recent Performance

Paul Ploumis
ScrapMonster Author
WGC expects world central banks to remain net purchasers in 2022 as well.

WGC Answers to Queries on Gold’s Recent Performance

SEATTLE (Scrap Monster): The World Gold Council (WGC), in its latest release, has addressed four of the most frequently asked questions by investors.

Gold has proven to be valuable for investors and has remained as one of the top-returning assets year-to-date. When compared with the performance of other assets over the past three-year period, it has protected capital and has served as a source of liquidity. Also, gold has performed well in other currencies as well. The investors had asked whether gold should have performed better than what it has.

ALSO READ:

World Gold Council: India Gold Retail Demand Surged in April

WGC Highlighted Chinese Gold Market Trends

Answering to queries whether Fed rate hikes will temper the safe haven appetite for gold, WGC noted that future hikes are unlikely to exceed 0.5%. Given the level of inflation, the real rates are most likely to remain negative. The rising stagflation risks will be supportive for gold, WGC noted.

Also, WGC explained that the positive correlation between oil and gold over the past year is primarily due to heightened geopolitical uncertainty.

During the turbulent first quarter of the current year, central banks across the globe added around 84 tonnes of gold to their reserves. It highlights consumers’ trust in gold’s strong performance during periods of crisis. Looking ahead, gold might attract further interest as a portfolio diversifier. WGC expects world central banks to remain net purchasers in 2022 as well.

×