COMEX Gold Eyes Demand Trends

Published on May 03, 2021 12:49

COMEX Gold futures saw a sharp reversal last week, bouncing from a two-week low to approach $1790 per ounce but broad demand worries stayed in place as India`s daily Covid-19 cases hit 4 lakh mark. Overall global demand scenario stayed lax too. The World Gold Council (WGC) stated in its latest Gold Demand Trends update last week that Q1 2021 global gold demand (excluding OTC) was 815.7t, virtually on a par with Q4 2020, but down 23% compared with Q1 2020. While the average gold price in Q1 was 13% higher y-o-y, it declined by 4% q-o-q. Growth in consumer demand was offset by strong outflows from gold-backed ETFs (gold ETFs), which lost 177.9 in Q1 as higher interest rates and a downward price trend weighed on investor sentiment. Total supply of gold fell 4% y-o-y in Q1. Mine production growth was outweighed by a fall in recycling, largely in response to weaker gold prices.