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.
Exhibiting remarkable performance, the gold rose by 12 per cent year-to-date and outpacing most major asset classes, the World Gold Council said in its Gold Mid-Year Outlook 2024.
According to WGC press release, despite this pause, the gold market remains robust with significant movements in prices, imports, and investor activity.
International gold prices dipped over 2 per cent on Friday, with analysts largely attributing the decline to stronger-than-expected job gains in the US and weak buying from key buyer, China.
According to the World Gold Council's latest commentary, the month saw a resurgence in inflows, primarily driven by strong demand in Europe and Asia, despite minor outflows in North America and other regions.
Gold, considered a safe haven asset for investment, has been in demand for considerable period of time, with its prices rallying to hit record highs every now and then.
According to the Gem and Jewellery Export Promotion Council (GJEPC), this growth comes at a time when the overall exports of gems and jewellery declined by 11.37 per cent to USD 2074.85 million in April 2024, highlighting a contrasting trend within the sector.
Global gold demand was up 3 per cent year-on-year at 1,238 tonne in the first quarter of 2024, marking the strongest first quarter since 2016, according to World Gold Council's Gold Demand Trends report.
Even as international gold prices fell relatively on Monday with relative ease in geopolitical tensions in the Middle East, the prices of the safe haven yellow metal are seen rallying towards USD 2,500 in case of further escalation in the war situation.
India's consistent efforts to bolster its gold reserves reflect a strategy aimed at diversifying its foreign exchange reserves and mitigating risks associated with currency fluctuations and economic uncertainties.
India’s gold demand in April-June 2023 quarter dropped by 7 per cent to 158.1 tonnes, attributable to high gold prices which significantly impacted affordability and consumer sentiment, said World Gold Council in a report on Tuesday.
Demand for precious metal gold is expected to be muted in 2023 even as the economic momentum remains healthy and the RBI repo rate hike cycle has paused after a prolonged monetary policy tightening, according to World Gold Council.