Published: 2020.05.13. Gold market: difference in demand in the West and the East

Gold market: difference in demand in the West and the East - Vista previa

Yellow precious metals are trading at 7-year highs, while gold ETFs record a record capital inflow. Investors around the world see gold as a protective asset against the backdrop of the spread of coronavirus in different countries. Moreover, precious metals set new price records in many currencies this year. After significant growth, some investors decided to take profits, then to buy gold again at a lower price. This was told by Louise Street of the World Gold Council (WGC).
In Western countries, investors behave more restrained and are not in a hurry to sell precious metals at the earliest opportunity. They keep it as long as possible in anticipation of a truly opportune moment. According to the WGC, the demand for gold will remain stably high until the end of 2020 due to concerns about the consequences of the spread of COVID-19. The gold market will see a drop in demand for jewelry and an increase in investment in ETF funds, the shares of which are provided with physical precious metals. Only with the stabilization of the global economy will the demand for gold jewelry begin to grow again.