Loading prices...

Register/Sign in
ScrapMonster
Gold July 08, 2022 10:05:00 AM

WGC: Gold Consumer Demand to Face Hurdles in H2 2022

Paul Ploumis
ScrapMonster Author
WGC expects market weakness to continue in China, mainly on account of possible mobility restrictions as part of its zero-COVID policy.

WGC: Gold Consumer Demand to Face Hurdles in H2 2022

SEATTLE (Scrap Monster): The World Gold Council (WGC) announced publication of its Gold Mid-Year Outlook 2022.

According to the report, the consumer demand for gold is likely to face hurdles in the second half of the current year. Although several markets are expected to benefit from the post-Covid recovery, the widespread economic slowdown is feared to put pressure on consumer demand for gold. The significantly high local gold prices in many countries may affect gold demand, it noted.

WGC expects market weakness to continue in China, mainly on account of possible mobility restrictions as part of its zero-COVID policy. The Indian demand also faces challenges, though not to the extent of China. The factors such as high retail inflation, uncertainties about economic outlook and the unexpected hike in gold import duty will weigh on the recovery of gold consumer demand in the country.

Overall, gold is likely to face two major headwinds in H2 2022- higher nominal interest rates and potentially stronger dollar. At the same time, the gold trade body expects more supportive factors offsetting the negative effect from the above two drivers. The underperformance of stocks and bonds in a potential stagflationary environment may benefit gold.

YOU MAY ALSO BE INTERESTED IN:

WGC: Central Bank Gold Reserves Bolstered in May

WGC Highlights Gold's Lasting Appeal and Shine

How to Recycle

All You Should Know About Scrap Metal Recycling

All You Should Know About Scrap Metal Recycling

Scrap metal recycling is a common practice in a range of industries. Learn about the process and explore the environmental benefits it brings.
How to Dispose of a Microwave Oven

How to Dispose of a Microwave Oven

Wondering how to dispose of a microwave? Read our blog post to learn about the disposal methods that help you make the best decision.
How to Dispose of a Refrigerator

How to Dispose of a Refrigerator

In this article, we will discuss some environment friendly methods on how to dispose of a refrigerator safely. Let’s check out the different options.
powered by RecyclingMonster
×

Quick Search

Advanced Search