World Gold Council predicts another leg up in gold prices
The international bullion body said unlike previous s periods when gold broke record highs, the market is still not saturated indicating that the gold prices may go up.
ANI
Jul 03, 2024 16:01 IST
New Delhi [India], July 3 (ANI): Bullish on gold, the World Gold Council anticipated that the "market could see another leg up."
The international bullion body said unlike previous periods when gold broke record highs, the market is still not saturated indicating that the gold prices may go up.
Adding further to the anticipations, it said gold may remain rangebound if current market expectations prevail. However, there's a clear path for gold to outperform from here, likely fuelled by Western flows.
Conversely, in the event that central bank demand drops drastically, rates remain high for longer and Asian investor sentiment flips, we could see a pullback in the second half.
The WGC further added that the gold rose 12 per cent year-to-date, outpacing most asset classes.
As per the report the surge was driven by continued central bank buying, robust Asian investment flows, resilient consumer demand, and ongoing geopolitical uncertainties.
Prices of gold, considered safe investment bets, have seen a mild correction after the latest stellar bull run.
Gold prices, though, remain about 15 per cent higher so far this year. Gold has been in demand for a considerable period, with its prices rallying to hit record highs now and then.
Geopolitical conflict in West Asia that stretched for a long time, buying by several central banks, including the RBI, and physical demand, have altogether pushed gold prices northwards.
Gold is a scarce commodity, and any mismatch in demand-supply conditions may invariably trigger a sharp price rise.
The report underscores the potential challenges as well by saying, "Despite the potential challenges, global investors are still benefiting from gold's role in robust asset allocation strategies."
The current gold prices at the international markets stood at USD 235.8 per ounce.
(ANI)
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