Increased consumption by jewelers is expected to boost global demand for gold to its highest level in four years, an annual report by Metals Focus reveals.
One of the world’s leading precious metals consultancies expects the global consumption of gold to reach 4,370 tons in 2019 – the highest since 2015. The projected quantity is slightly up from 4,364 tons consumed last year.
Global gold supply is projected to see a modest increase of one percent to 4,707 tons in 2019. Growing production of the precious metal in West Africa, Canada and Russia will be reportedly offset by lower production volumes in South Africa, China and Indonesia.
Also on rt.com Russia adds more than 1,000,000 ounces of gold to country's vast stockpileConsumption of the precious metal for jewelry is forecast to rise by three percent to 2,351 tons, boosted by increases of seven percent in India and three percent in China. The world’s two biggest gold consumers will reportedly offset lower demand in the Middle East.
The report titled Gold Focus 2019 notes that gold purchases by central banks, which saw enormous growth of 75 percent last year, will drop nine percent to 600 tons in 2019, while physical investment demand will remain mostly unchanged at 1,082 tons.
Also on rt.com All that glitters isn't gold: Palladium hits all-time record as deficit boosts pricesWhen it comes to prices, the current year will reportedly be less challenging for gold compared to 2018. The price of a gold ounce will reportedly see a three percent year-on-year increase to around $1,310 on average. Gold spot is currently trading at about $1,293 per ounce.
The price rally will be triggered by global political and economic uncertainty, along with the expected end of interest rate hikes by the US Federal Reserve, while a strong US dollar may dampen demand by making gold more expensive for buyers with other currencies.
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