Gold Extends Slide Under $1800 Mark

Published on Jan 28, 2022 17:54

COMEX Gold has tanked as a slide under $1800 per ounce mark extended today. The dollar index has soared well above 97 mark and COMEX Gold has dropped nearly 1% in intraday moves, testing its one month low of $1780 per ounce. Gold has tumbled despite strong cues from demand supply figures. The World Gold Council (WGC) stayed in its latest Gold Demand Trends update today that the global annual Gold demand recovered across virtually all sectors with the notable exception being ETFs, which saw net annual outflows. Full year 2021 gold demand (excluding OTC) increased to 4,021 tonnes (t), up 10% compared to 2020. This was propelled by impressive Q4 demand which jumped almost 50% to a 10-quarter high.

WGC noted that total Gold supply fell by 1% y-o-y in 2021, the second successive year of declines and the first consecutive fall in more than a decade. Although mine production increased to 3,561t, largely due to fewer pandemic interruptions, it was still slightly below its 2019 level. A sharp drop in recycling to 1,150t drove the y-o-y fall in overall total supply, despite consumers in virtually all markets being able to sell-back their old gold jewellery more easily.