World Gold Council expects rising trajectory in gold investment

Date

11/3/2024 7:46:52 AM

(MENAFN) The World Gold Council expects an upward trend in gold investment as gold demand broke a record this quarter, with continuing investment flows, Juan Carlos Artigas, head of research at the World Gold Council, told Anadolu.

“I think that there is still a lot of pent-up demand from the investment side, (… and) it is likely that you can continue to see stronger influence into gold, because the gold market, from an investment side, does not feel, does not seem, saturated,” he said.

Artigas stated that India’s demand in particular is stronger than expected and has been effective in breaking the gold demand record this quarter, while declining policy rates in the US and Europe led to reduced opportunity costs of holding gold. Meanwhile, geopolitical tensions in the last few years contributed to the demand.

“Gold has a dual nature—you have the investment side and (…) the consumer side—(while) jewelry demand was negatively affected, both by higher prices, but also by more constrained economic growth (in China); therefore, (…) the combined effect of both higher prices and constrained economic growth have a very visible effect on demand in China, (though) it will depend, region by region how this is expressed, as (…) higher prices do tend to create headwinds for consumer demand,” said Artigas.

He noted that people take advantage of the safe haven feature of gold as a hedging strategy against risks, and as the risk goes up, so does investment in gold. Artigas stated that gold is a “fairly effective risk hedge” against inflation, geopolitical tensions, and market volatility.

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