Gold demand reaches new heights

ABSTRACT

AFRICAN DEVELOPMENT The World Gold Council's latest Gold Demand Trends Report revealed that annual demand (excluding OTC markets) has recovered many of the Covid-induced losses from 2020 to reach 4 021t for the full year in 2021.[1] Demand for gold reached 1 147t in Q4 2021, its highest quarterly level since Q2 2019 and an increase of almost 50% year-on-year, according to the World Gold Council. Gold bar and coin demand rose 31% to an 8-year high of 1 180t as retail investors sought a safe haven against the backdrop of rising inflation and ongoing economic uncertainty caused by the coronavirus pandemic. Meanwhile, the World Gold Council's data series reported outflows of 173t in 2021 from gold-backed ETFs as some more tactical investors reduced hedges early in the year amid Covid vaccine rollouts, while rising interest rates made holding gold more expensive