Gold demand to rise in 2019: World Gold Council

Why is it in the news?
  • According to a latest report by the World Gold Council (WGC), Increased market uncertainty and expansion of protectionist economic policies will make gold increasingly attractive as a hedge in 2019.
  • Also, the structural economic reforms in key markets will continue to support demand for gold in jewellery, technology and as means of savings in the year.
More in the news
Findings of the report:
    • According to WGC, key trends that are expected to influence the precious metal’s price performance include:
      (1) Financial market instability,
      (2) Monetary policy, t
      (3) The U.S. dollar and the structural economic reforms.
    • However, gold has an increasingly relevant role to play in investors’ portfolios.
    • It also highlighted that in 2019 global investors would continue to favour gold as an effective diversifier and hedge against systemic risk.
    • In the longer term, gold will be supported by the development of the middle class in emerging markets, its role as an asset of last resort, and the ever-expanding use of gold in technological applications.
Gold in 2018
  • Gold prices witnessed a see-saw journey in 2018 as investor interest ebbed and flowed despite steady growth in most sectors of demand.
  • The precious metal also faced headwinds for most part of 2018 with the dollar strengthening, the Fed continuing to hike rates steadily while other central banks keeping policy accommodative, and the U.S. economy getting a fillip in the form of tax cuts.
World Gold Council
  • The World Gold Council is the market development organisation for the gold industry.
  • It is a nonprofit association of the world's leading gold producers.
  • Its purpose is to stimulate and sustain demand for gold, provide industry leadership, and be the global authority on the gold market. 
  • It provides insights into the international gold markets, helping people to understand the investment qualities of gold and its role in meeting the social and environmental needs of society.
Source
The Hindu, WGC.


Posted by Jawwad Kazi on 11th Jan 2019
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