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Gold January 15, 2020 11:30:44 AM

WGC Chief Signals Decent Gold Rally in 2020

Paul Ploumis
ScrapMonster Author
High gold duty in times of elevated global gold prices tends to impact Indian gold purchases.

WGC Chief Signals Decent Gold Rally in 2020

SEATTLE (Scrap Monster):  Gold is likely to witness a decent rally in 2020, said David Tait, Chief Executive Officer, World Gold Council (WGC).

According to him, gold, despite record jump in 2019, is ripe for further rally this year. The growing risks from elevated corporate and personal debt levels will drive the rally. He highlighted gold’s potential to rise to higher levels, despite easing of geopolitical tensions and amicable settlement of ongoing trade was between the U.S. and China.

Tait urged the Indian administration to reduce the elevated import duty on gold from 12.5%. Such a move will bolster the industry and increase the revenue flow for the government, by putting breaks on rising gold smuggling incidents. Furthermore, it will lead to creation of a more transparent market over time.

 

ALSO READ: Indian Commerce Ministry Seeks Drastic Cut in Gold Import Duty

High gold duty in times of elevated global gold prices tends to impact Indian gold purchases, Tait said. It must be noted that gold demand in India had hit lowest level in three years in 2019.

He noted that the geopolitical tensions will continue. Although, there are signs of current crisis easing off, similar crisis situations are likely to happen in future. This pressure situation will underpin gold in the forthcoming few years. Also, gold will continue to remain as a hedge against disaster, he noted.

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