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As on: Jan 26, 2021 02:05 AM
WGC Says Gold Investment Will Remain Well Supported
14-Jan-21   17:44 Hrs IST

The World Gold Council (WGC), noted in its annual outlook that the COVID-19 pandemic raised uncertainty by compounding existing risks and creating new ones. But by the end of last year, investors were optimistic that the worst was over. The WGC believes that investors will likely see the low interest rate environment as an opportunity to add risk assets in the hope that economic recovery is on the immediate horizon. The investors will likely also be navigating potential portfolio risks including: ballooning budget deficits, inflationary pressures, market corrections amid already high equity valuations.

WGC noted that the Gold investment will remain well supported while gold consumption should benefit from the nascent economic recovery, especially in emerging markets. Gold gained from risk, rates and momentum. Gold was one of the best performing major assets of 2020 driven by a combination of: high risk, low interest rates, and positive price momentum – especially during late spring and summer. Gold also had one of the lowest drawdowns during the year, thus helping investors limit losses and manage volatility risk in their portfolios

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