Do not expect a sharp jump in gold jewellery demand: World Gold Council MD

We have seen a substantial jump in ETFs in the last few weeks, says PR Somasundaram

Gold continues to shine bright and clearly that risk aversion, fears of a second wave of Covid-19 both in the US as well as other parts of the world is only making it dearer. Do you think gold could potentially climb up even further from $1,800?

Actually it will be very difficult to say. First of all, we do not forecast prices but everything that affects gold prices today definitely shows that this is not a normal thing. So we should expect things to be volatile but the trend is obviously looking up. But we really do not forecast prices.

What is it that you are seeing when it comes to demand? Are you seeing big buying coming in when it comes to both physical gold as well as ETFs?
As far as ETFs are concerned, India has always been very small but we have seen a substantial jump in the last few weeks in particular. As far as the physical demand is concerned, which is primarily jewellery in India and is 80% of our demand, the lockdown has affected it. Now most of the stores report that they have opened it at various places and in some places obviously business has been good.

But it will be difficult to expect a sharp jump now because this is anyway an off season and rural demand which drives Indian gold demand is really focussed more now on the monsoons and agriculture. So there will be more growth in gold loans rather than buying of loans during this period.

Courtesy: Economic Times