Gold demand expected to decline by 9 percent in 2023
New Delhi. Gold has once again come under pressure in the international gold market. Due to this, the price of gold has reached a two month low in the international market. At present, gold has gone below the level of $ 1,950 per ounce ($ 1,950 an ounce) in the international gold market.
Actually, the demand for gold in the international gold market has decreased due to the reduction in the purchase of gold by the central banks of many countries. Last year, the central banks of various countries had strengthened their gold reserves by making a record purchase of gold due to fears of recession and upheaval in the global economy, but now the central banks of most countries have started buying gold from the international market. reduced.
An immediate reason for the fall in the price of gold in the international gold market is also being attributed to the sudden hike in interest rates in Canada and Australia. Along with this, the strength of the US dollar and the increase in treasury yields have also affected the international gold market.
According to experts, due to the increase in interest rates in America and Canada, the interest of investors towards investing in gold has decreased. Because of this, there is a possibility of a decrease in the demand for gold in the international market. On the other hand, this year the supply of gold in the international gold market is expected to increase by about 2 percent. With this happening, the gold surplus is expected to reach the level of around 500 tonnes.
In the report of International Agency Metal Focus, the demand for gold is expected to decline by about 9 percent in 2023. Because of this also there has been pressure on the price of gold in the international market. However, the first 5 months of the year 2023 have been very positive in terms of gold prices. During this period, the price of gold in the international market has increased by about 7 percent. But now due to the possibility of increase in the supply of gold and the possibility of decrease in demand, gold has started coming under pressure.
According to commodity expert Mayank Mohan, since the second fortnight of May till now, the price of gold in the international gold market has remained in the range of $1,930 to $1,980 an ounce. It is from this level of gold price that the decrease in demand for gold is realized. The effect of the pressure in the international gold market is also visible in the Indian market. Today, the price of 24 carat gold in Mumbai bullion market was Rs.61,500 per 10 grams, while the spot price of 24 carat gold in Ahmedabad was Rs.61,300 per 10 grams. Similarly, gold futures in MCX continued to trade at Rs 59,455 per 10 grams with a weakness of 0.08 per cent.
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