World Gold Council expects gold demand to rise

Gold bars in Tokyo

Investors and the jewelry industry are likely to drive the gold price up in the new year.


(Photo: Reuters)

Zürich Continued high investor demand and a resurgent jewelry industry could fuel demand for gold in the new year. The World Gold Council (WGC) assumes this in a published on Thursday evening market survey out.

Concerns about an increase in national debt and higher inflation rates are likely to ensure continued strong inflows into gold-backed index funds. The funds, in which the providers deposit a certain amount of gold for each unit sold, had already driven the rise in gold prices last year.

In 2020 alone, the amount of gold managed by index fund providers rose by 860 tons to over 3,600 tons, according to data from the WGC. Together, the index fund providers are now the second most important player on the gold market after the US Federal Reserve – even ahead of the Bundesbank.

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