Gold demand appears to be positive in India as the consumer sentiment is likely to recover in 2021, from its dismal performance due to the coronavirus pandemic-related disruptions and volatile price movement, according to a report by the World Gold Council (WGC).
The report, titled 'Gold Outlook 2021- Economic recovery and low interest rates set the tone', also said although global economic growth is likely to remain anaemic relative to its full potential for some time, gold's more stable price performance since mid-August may foster buying opportunities for consumers.
It said the economic recovery is likely to be realised in countries like China, which suffered heavy losses in early 2020, before the spread of the pandemic is controlled more effectively than in many western countries.
However, with the global economy operating well below potential and gold prices at historical high levels, consumer demand may remain subdued in other regions, it added.
World Gold Council Managing Director (India) Somasundaram P R said, "The year 2020 turned out to be unprecedented in the scale and degree of uncertainty. Gold naturally was one of the best performing assets for investors driven by high risk, low interest rates and price momentum."