Global gold demand rose 10 per cent in 2021

Gold is still most sought after metal. Global gold demand rose 10 per cent to 4,021.3 tonnes in 2021 on account of a massive 50 per cent surge in year-on-year demand -- a 10-quarter high -- during the December quarter, a report by the World Gold Council (WGC) said. The overall gold demand during 2020, which was impacted following Covid-19 related disruptions, stood at 3,658.8 tonnes, the WGC said in its 'Gold Demand Trends 2021' Report. "The demand for the yellow metal was mainly driven by Central bank buying during the fourth quarter of 2021, recovery in jewellery consumption, mainly in India and China," WGC Regional CEO, India, Somasundaram PR told PTI.In addition, the report said that gold is likely to continue to find support from consumer and central bank demand.
Demand for gold reached 1,146.8 tonnes in the October-December quarter in 2021, its highest quarterly level since the second quarter in 2019 and an increase of almost 50 per cent year-on-year, according to WGC data. The overall demand during Q4 2020 stood at 768.3 tonnes. The last quarter of 2021 witnessed 31 per cent growth in gold bar and coin demand to an 8-year high of 1,180 tonnes as retail investors sought a safe haven on the back of rising inflation and ongoing economic uncertainty caused by the pandemic, it noted. The use of gold in the technology sector in 2021 increased 9 per cent to reach a three-year high of 330 tonnes, the report stated adding that while technology demand is comparatively smaller than other sectors, its uses are far reaching and prevalent in a variety of electronics, from mobile devices to the sophisticated James Webb telescope recently put in orbit. WGC expects gold to face similar dynamics in 2022 to those seen last year, with competing forces supporting and curtailing its performance..