WGC Foresees Firm Support for Gold Demand in 2018

SEATTLE (Scrap Monster): The World Gold Council (WGC) has published the Annual Review Report for the year 2017. The report highlights the key factors that contributed to gold’s robust performance during the year. It also outlines the programmes in pipeline that could drive the industry forward. The gold trade body expects the strong growth momentum to continue in 2018.

During the previous year, WGC was successful in establishing strong relationships with key pension funds in the US. The year also marked the launch of LMEprecious contracts in association with the London Metal Exchange (LME) and six other financial institutions. The Council was actively involved in consultations with Indian authorities, which finally made the government realize the importance of making hallmarking mandatory. It also emphasized the need to develop a gold trading market in India.

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The WGC continued its effort to promote the development of gold investment market in Russia. In order to boost private gold investments in the country, it is necessary to remove the high 18% VAT rate on gold bar purchases, WGC research noted. Further, it also joined hands with industry stakeholders to develop a policy white paper, which outlines five-year action plan towards further development of Chinese gold market.

According to WGC, 2017 was a challenging year for gold demand, with demand falling to the lowest level since 2009. The annual gold demand stood at 4,066.4 tonnes. Out of this, India and China together accounted for 41% of global gold demand. Over the course of the year, gold prices rose sharply across many major currencies. Several factors including reasonable growth in global economy, tighter monetary policy by leading world economies, transparent financial markets and enhanced products portfolio are likely to support strong demand in 2018.