Home NewsForex Market News The World Gold Council estimates that the demand for gold jewelry will cool in the second half of the year | Anue Juheng- Gold

The World Gold Council estimates that the demand for gold jewelry will cool in the second half of the year | Anue Juheng- Gold

by WOOWinvest
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The World Gold Council estimates that the demand for gold jewelry will cool in the second half of the year | Anue Juheng- Gold


The World Gold Council (WGC) released its second-quarter report on Thursday (28th), pointing out that the Chinese and Indian markets face downside risks of slowing growth, which may lead to a decline in gold jewellery demand.

The latest report shows that gold demand has been weak beyond 2021, driven by China’s epidemic blockade and a stronger dollar reached 2,189 tons, an increase of 12% year-on-year.

LBMA gold prices averaged $1,871 an ounce in the second quarter, 3% higher than a year earlier, as central bank interest rate hikes and a strong dollar pushed gold prices down 6% in the second quarter and gold ETFs also fell.

With many countries facing a weakening economy this year and rising living costs continuing to weigh on consumption, demand for gold is likely to weaken further, weighing on gold prices. The report pointed out that China’s new crown virus “zero” policy and the troubled real estate industry may slow down the recovery of gold demand.

Gold demand in India, the world’s second-biggest consumer of gold, rose 43% in the second quarter from a year earlier, but India’s demand for gold is likely to decline in the second half of the year.

Inflation makes it harder for people, especially in rural areas, to save money and buy gold, said Somasundaram PR, chief executive of WGC India.

In the first half of the year, the inflation rate in India was above the 7% mark for six consecutive months, which was beyond the tolerance range of the RBI. It is likely to raise interest rates further next month. These factors are also hurting India’s demand for gold.

The World Gold Council on Thursday lowered India’s gold consumption in 2022 to the lower limit of 800 tons, from an earlier estimate of 800-850 tons.

Gold futures for August delivery in New York were up 0.87%, or $14.90, at $1,734.15 an ounce by press time.

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