Published: 2021.04.19. OGK: brief results of the 1st quarter of 2021

OGK: brief results of the 1st quarter of 2021 - Preview

On the other hand, the recovery in economic activity and the low price of gold gave long-term investors a chance to build up their positions in gold.
According to analysts from the World Gold Council, stabilization of interest rates amid growing unsecured money supply and rising inflation will lead to an increase in demand for investment products made from gold in the medium and long term.
It is thanks to the decline in the world gold price in the first months of this 2021 in some regional markets that there is a recovery in demand for the yellow precious metal. For example, in January this year, India recorded a noticeable increase in retail demand, and in February, the increase in demand was facilitated by a decrease in customs duties on gold imports, as well as an increase in the exchange rate of the Indian rupee.
As for China, the second largest consumer of gold in the world, there was an increased demand for gold in January and February during the Chinese New Year. Gold jewelery sales rose 161% in value during the holidays, according to the country's trade ministry. Chinese ETFs, which are backed by physical precious metals, have also recorded capital inflows. At the end of March, the gold reserves of the funds increased by 5 tons, reaching a new record value of 72.4 tons.
While North American gold ETFs saw outflows in the first quarter of 2021, the US Mint reported an increase in physical gold bullion and coin sales over the period. Thus, he was able to sell over 400,000 ounces of the yellow precious metal. The Australian Mint, located in The Perth Mint, also reported growth in gold sales since the beginning of the year.