Gold: Physical demand will be a positive for gold prices in 2021 – Capital Economics


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Despite a surge in gold prices last year, physical demand for gold fell precipitously, noted James O’Rourke, Commodities Economist, at Capital Economics. They think that a brighter economic outlook will boost consumer demand this year and help to prop up the gold price.

Key Quotes: 

“We anticipate a strong economic recovery in India this year, which will support physical gold demand. Indeed, India’s Finance Ministry has finally announced significant fiscal stimulus, which will bolster demand.”

“We expect demand to return to more normal levels in China, the world’s largest consumer of physical gold. Indeed, the premium in the local gold price (see Chart 4) suggests that demand is already recovering as the Lunar New Year holiday, typically a period of strong physical gold demand, approaches. This strength comes despite a subdued start to the festive season.”

“We reckon that a revival in jewellery consumption in key consumers India and China will put a floor under the gold price this year, even as investment demand for gold eases back slightly.”

XAU/USD

Overview
Today last price 1837.62
Today Daily Change -21.34
Today Daily Change % -1.15
Today daily open 1858.96
 
Trends
Daily SMA20 1860.72
Daily SMA50 1856.84
Daily SMA100 1877.15
Daily SMA200 1851.82
 
Levels
Previous Daily High 1871.9
Previous Daily Low 1847.54
Previous Weekly High 1875.7
Previous Weekly Low 1831.36
Previous Monthly High 1959.42
Previous Monthly Low 1802.8
Daily Fibonacci 38.2% 1862.59
Daily Fibonacci 61.8% 1856.85
Daily Pivot Point S1 1847.03
Daily Pivot Point S2 1835.11
Daily Pivot Point S3 1822.67
Daily Pivot Point R1 1871.39
Daily Pivot Point R2 1883.83
Daily Pivot Point R3 1895.75

 

 

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