Forex Analysis & Reviews: World Gold Council Forecasts
time 01.08.2022 01:58 PM
time Relevance up to, 15.08.2022 10:37 AM

This image is no longer relevant

In the first half of the year, there was a steady physical demand in the gold market. But slowing growth in the second quarter prompted the World Gold Council (WGC) to cut its outlook for the rest of the year.

The WGC said that the difficult economic situation creates obstacles and opportunities for the precious metal. In their mixed outlook, analysts said continued inflationary pressures, coupled with rising market uncertainty, will support gold prices through the end of the year.

The WGC lowered its forecast for 2022 in its Q2 trend report, predicting relatively stable demand towards the end of the year.

The report says demand for physical gold fell by 948 tons, or 8%, compared to the second quarter of 2021. However, the demand for physical gold in the first half of the year amounted to 2,189 tons, which is 12% more than in the first half of last year.

Despite the fact that in the second half of the year, the demand for gold may decrease, WGC does not expect the market to collapse. According to analysts, there is enough uncertainty in the market to support demand.

Looking at demand trends in the second quarter, the WGC said much of the weakness could be attributed to lower investment demand. The report says that overall investment demand fell 28% in the second quarter. And gold-backed commodities lost 39 tons. At the same time, the demand for the physical metal remained virtually unchanged compared to last year.

Looking at the ETF market, the WGC said North American-listed funds are leading the way in outflows. And the liquidation was due to the aggressive monetary policy of the Federal Reserve System.

Along with weak investment demand, the report says central banks' appetite for gold has also weakened. And in the second quarter, central banks bought 180 tons of gold, down 14% from last year.

However, WGC believes that even if growth slows before the end of the year, central banks will continue to be net buyers of gold.

One of the strengths of the gold market has been the demand for jewelry. The report said that global demand for jewelry increased to 453.2 tons, up 4% from last year. Jewelry demand in India dominated the global market, up 49% in the second quarter from 2021.

At the same time, the ongoing quarantine measures in China continued to pressure the market, with the demand for jewelry in the country falling by 29% compared to last year.

The report also notes that as demand falls, supply increases. And in the first half of the year, the total supply of gold rose to a record high, up 5%.

The report also noted strong recycling in the gold market, which jumped 8% in the second quarter.


บทวิเคราะห์ของทาง InstaForex จะทำให้คุณทราบถึงแนวโน้มของตลาด! ในการที่เป็นลูกค้าของทาง InstaForex นั้นคุณจะได้รับการบริการเพื่อการซื้อขายอย่างเต็มประสิทธิภาพอย่างมากมาย

  • เทรดให้ดีแล้วคว้ารางวัล
    เติมเงินในบัญชีของคุณอย่างน้อย $500 สมัครเข้าร่วมการแข่งขัน และลุ้นรับรางวัลอุปกรณ์ติดต่อสื่อสารแบบพกพา
  • เฟอร์รารีจาก InstaForex
    เติมเงินในบัญชีของคุณอย่างน้อย $1,000
    F8 Tributo
  • Chancy Deposit
    ฝากเงินเข้าบัญชีของคุณด้วย $3,000 และรับรางวัล $1,000
  • โบนัส 100%
    โอกาสพิเศษของคุณในการรับโบนัส 100% จากเงินฝากของคุณ
  • โบนัส 55%
    สมัครรับโบนัส 55% สำหรับการฝากทุกครั้ง
  • โบนัส 30%
    รับโบนัส 30% ทุกครั้งที่คุณเติมเงินในบัญชีของคุณ

Recommended Stories

USD may strengthen again

The robust US economy and aggressive rate hikes are strong trumps for the US dollar but they are not the only ones. The USD index rose due to strong demand

Marek Petkovich 13:43 2022-12-09 UTC+2

Markets will resume rally if there are positive news next week

The sell-off in equity markets ran out of steam on Thursday, signalling that the market has already played back the negative sentiment created by the strong labor market data

Pati Gani 13:42 2022-12-09 UTC+2

ECB will continue to raise rates in 2023

Euro is gaining, albeit gradually, after the deep correction earlier this week. This is because forecasts from several leading economic agencies say the ECB will raise rates rates twice more

Jakub Novak 12:10 2022-12-09 UTC+2

Dollar weakness: what to look out for

The two-day gains in precious metals and currency pairs with the dollar occurred amid the weakening dollar. Weekly jobless claims in the US rose to 230,000. This figure will certainly

Irina Yanina 11:45 2022-12-09 UTC+2

Has Bitcoin bottomed out, or will it fall to $5,000 in 2023?

The Fed may not be doing very well on inflation, but asset market bubbles are successfully bursting thanks to monetary policy tightening. This applies to the more than 50% collapse

Marek Petkovich 10:00 2022-12-09 UTC+2

EUR/USD. Speech of ECB head, Fed's "Blackout period" and Danske Bank forecasts

Next week the US Federal Reserve and the European Central Bank will hold their last meetings of the year. These events will be the final chord of the year

Irina Manzenko 07:35 2022-12-09 UTC+2

The market offers no support for the dollar.

What topics ought a trader in currencies to discuss this week? Business activity indices for the services sectors in the UK, the USA, and the European Union were released

Chin Zhao 06:09 2022-12-09 UTC+2

GBP/USD. Overview for December 9. The pound is increasing but is unable to comprehend why.

Also, on Thursday, the GBP/USD currency pair failed to break through the moving average line. If you examine the price movement since November 4 (or for a full month)

Paolo Greco 05:56 2022-12-09 UTC+2

EUR/USD. Overview for December 9. There are still no global factors for the growth of the euro currency.

The EUR/USD currency pair on Thursday maintained its previous movement pattern. Once more, the price could not surpass the moving average line, which is now giving rise to grave concerns

Paolo Greco 05:56 2022-12-09 UTC+2

EUR/USD. Unforeseen event circling over traders

EUR/USD bulls have exhausted their potential, which was based on rumors of a slowdown in the pace of monetary policy tightening by the Fed. Traders fear a "black swan"

Irina Manzenko 22:49 2022-12-08 UTC+2
ระบุคำถามไว้ได้ใน แชท.