PRECIOUS METALS

Gold demand surges in Q4

GOLD demand bounced back in 2021, according to data from the World Gold Council.  

 Indian gold demand was particularly strong in 2021

Indian gold demand was particularly strong in 2021

"Annual demand recovered across virtually all sectors - the notable exception being ETFs, which saw net annual outflows," the WGC said.

According to the WGC, gold demand rose by 10% year on year in 2021, to 4021 tonnes, driven by a bounce back in jewellery demand.

Demand was particularly strong in the fourth quarter, up 40% year on year at a 10-quarter high of 1147t.

"Demand recouped much of the COVID-related losses sustained during 2020," the WGC said.

"Demand for gold in the consumer-driven jewellery and technology sectors recovered throughout the year in line with economic growth and sentiment, while central bank buying also far outpaced that of 2020."

"Investment demand was mixed in an environment of opposing forces: high inflation competed with rising yields for investors' attention."

Indian jewellery demand was particularly strong in 2021. Demand for jewellery is being boosted as the lockdown restrictions ease, and weddings and festivals resume.

The Indian jewellery market contributed 611t of demand in 2021, a six-year high, with record fourth quarter demand of 265t.

"Festivals and weddings were the driving force behind robust Q4 demand," the WGC said.

"Jewellery demand remained strong in October with festival purchases of Dussehra and Pushya Nakshatra, followed by a robust Dhanteras".

But ETFs were net sellers of gold over the year, with net outflows of 173t in 2021.

"These were heavily concentrated in Q1, coinciding with a sharp rise in US rates and risk-on investor appetite as newly developed vaccines were rolled out," the WGC said.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.