Meanwhile, gold demand in India, the world’s largest bullion consumer, is expected to fall as much as 13% to 850 metric tons this year, the lowest level since 2009, due to a 10% duty on imports to cut back the country’s widening current-account deficit, according to a separate Bloomberg report.
On the other side of the market, gold supply increased 10% in the second quarter to 1,078 tons, with mine production rising 4% to 765 tons.
Investors are also showing a greater preference for utilizing gold-related ETFs, the WGC said, pointing to investments rising by 4% in the three months through June to 235 tons. [Gold ETFs Buoyed by Geopolitical Tensions]
“Investors are now comfortable owning gold again in the form of ETFs and we’ve seen a very significant stabilization,” Marcus Grubb, managing director of investment strategy at the World Gold Council, said in the WSJ article.
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Max Chen contributed to this article. Tom Lydon’s clients own shares of GLD.