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Gold Steady Above $1800 Per Ounce, Covid-19 Worries Offer Support

Published on Aug 02, 2021 12:39

Gold has stayed broadly supported on rising Covid-19 worries in last few days. The surge in the COVID-19 infections worldwide has been relentless, with spiking cases in the US and Japan so much so that the world`s third-largest economy is set to expand the state of emergency to Tokyo`s three neighboring prefectures of Osaka, Saitama, Chiba and Kanagawa. The COVID-19 outbreak in Malaysia has become one of the worst globally. This is keeping the metal broadly supported after it hit a two week high around $1830 per ounce. The World Gold Council (WGC) noted in a latest update that strong consumer demand recovery and Q2 gold ETF inflows were not enough to offset heavy Q1 outflows. Gold demand (excluding OTC) for Q2 was virtually in line with Q2 2020 at 955.1t (-1%). That took H1 demand to 1,833.1t, down 11% y-o-y. Q2 jewellery demand (390.7t) continued to rebound from 2020`s COVID-hit weakness, although it remained well below typical pre-pandemic levels, partly due to weaker Indian demand growth. Demand for H1, at 873.7t, was 17% below the 2015-2019 average. Bar and coin investment saw a fourth consecutive quarter of strong year-on-year gains. The Q2 demand of 243.8 resulted in a H1 total of 594.t, the strongest since 2013.

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