Inflationary Concerns Supportive For Gold

Gold is trading at 1885 against the dollar, though it attempted breaking the resistance level 1910 unsuccessfully. What has been giving life to gold is the concerns on recovery after the second and third wave of the pandemic, inflation concerns, and also falling yields in the very recent past.

Global gold ETFs lost US$1.10 billion or 0.50% of assets in April, 21. The last six months have seen ETF outflows, though it seems to have slowed. The level of assets stands at US$ 203 billion. The peak assets in ETF was seen in November, 2020, ETF, after which it has come down by 14% – 8% due to outflows and 6% from the fall in gold prices.

While the outflows from the ETFs continued with several economies registering a faster economic revival, the demand from consumers on account of the fall in the prices of gold helped lift up the prices from low levels. The objective of acquiring gold at lower levels is something that is being pursued by many retail consumers as well as investors. When it comes to jewellery, the spending for the Q1 of CY21, was to the tune of US$ 27.50 billion, the highest number since 2013. Central bank buying, though it has been coming down, there is a revival in buying from some of the major central banks as the official reserves of gold has been rising

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