World: 2021 ended with rising gold demand (WGC)

Global demand for gold for the whole of 2021 has seen an increase, reaching 4,021 tons, according to the World Gold Council (WGC) report published on January 28, 2022.

In this report, it is specified that demand has recovered a large part of the losses linked to the health crisis in 2020.

World Gold Council notes, in the same report, the drop in gold consumption levels around the world in the first half of 2021 and the chain, the following three months, also with a drop.

The report states that it was towards the end of the year that they recovered.

Thus, the WGC report signals a year-on-year increase of nearly 50% in demand in the fourth quarter, its highest level in ten quarters.

Throughout the year, demand picked up in almost all sectors, particularly jewelry and technology.

While central bank purchases also increased (+82%) and investment demand was rather mixed, gold-backed exchange-traded funds (ETFs) were the worst performer with a drop of 173 tons which contrasts with the record increase of 874 tons recorded in 2020.

In terms of outlook, WGC indicates that “in 2022, gold could face similar dynamics to last year, with competing forces supporting and hindering its performance”.

According to WGC experts, the price of gold will react to real rates in the short term depending on how quickly global central banks tighten monetary policy and how effectively they control inflation.

Note that several African countries will once again monitor the behavior of the gold market this year. The main ones are Ghana, the continent’s biggest producer, but also its pursuers which are Sudan, South Africa, Mali or Tanzania, Côte d’Ivoire and Burkina Faso.