London: – The demand for Gold is seen to be rising on the international level and the World Gold Council informed that the demand for Gold exceeded 4,000 tonnes in the last year. As per the report ‘Gold Demand Trends 2021’, Gold demand increased by 10% in 2021. The World Gold Council said that the main reason for this is the efforts to bring the economy on track following the Coronavirus pandemic.
In its report, the World Gold Council has said that in the year 2020, multiple restrictions had been imposed at the international level given the Coronavirus pandemic. These restrictions had brought daily transactions to a grinding halt and the economy also slowed down. This is also reflected in demand for Gold. In 2020 the demand for Gold had declined to 3,658 tonnes. But the demand started increasing slowly in 2021 and in the last quarter it grew by 50%.
The main factors responsible for the increasing demand for Gold are increased demand in the ornaments, coils, Gold bars and the technology sectors. At the same time, the purchases made by the central banks of the world also were significant. The World Gold Council informed that the central banks worldwide purchased 463 tonnes of Gold. The depreciating value of the USD, increasing inflation and Coronavirus crisis have once again created the trend among the Central Banks of buying Gold. Over the last decade, the Central Banks worldwide have made an addition of a whopping 4,500 tonnes of Gold to their reserves.
Furthermore, the process to increase Gold stocks was accelerated following the recession that hit the world in 2008-09. The uncertainty regarding the USD has been growing over the last few years. Moreover, China, Russia, and European countries have reduced the use of USD. The faith in Gold is rising against this background, and the central banks’ decisions to increase the purchase of Gold only endorse this sentiment. The World Gold Council said that India and China have reported the highest demand.
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