The Australian Department of Industry, Innovation and Science has published its forecast for gold. The review says that demand for gold in 2020 will increase by + 1.3%, and in 2021 by + 3.1%. According to the results of 2021, global demand may reach 4760 tons.
According to Australian experts, the main drivers of growth in demand for yellow precious metals will remain private investors, who will continue to buy investment products in the form of bars and coins. Sales of jewelry will remain at a high level, and Central banks will continue to pursue a policy of increasing the gold reserves of their countries.
According to the forecast, investment in gold by private investors will be the main factor in the growth of demand. In 2020, this indicator can grow by + 20%, and in 2021 - by + 3% to 1196 tons. This trend reflects the general political instability in the United States and the tense geopolitical situation in the Middle East. The review also says that a correction in global stock markets will lead to a significant shift in cash to the gold market.
The review also reports that demand for jewelry in 2020 will increase by + 9.1% to 2332 tons, and in 2021 by + 4.6% to 2440 tons. India will become the main driver of growth in this market . Economic growth, an increase in the urban population, increased incomes of citizens and a positive mood among consumers will contribute to the consumption of gold jewelry in this Asian country.