News:The World Gold Council (WGC) recently released its report, “World Gold Outlook 2020”.
Key takeaways from the report:
- The Gold has performed the best in 2019.Since 2010 the gold trade in dollars has increased by 18.4% in 2019.
- The Reserve Bank of India ranks 6th in buying gold abroad.Currently,it holds 625.2 tonnes of gold.This is 6.6% of the country’s foreign exchange.
- The other 5 countries that have bought more gold than India include China, Russia, Kazakhstan, Turkey and Poland.
- Further,the demand for gold in 2020 for India will depend upon (a) financial uncertainty and lower interest rates (b) weakening in global economic growth and (c)gold price volatility.
World Gold Council (WGC)
- The World Gold Council is the market development organisation for the gold industry. It is an association of the world’s leading gold producers.
- It was established in 1987 and is headquartered in the United Kingdom.
- Gold reserves are central banks’ total holding of gold as a percentage of their foreign exchange reserves.
- WGC gold reserve data are based on International Monetary Fund’s International Financial Statistics (IFS) which tracks central banks’ reported purchases and sales along with gold as a percentage of their international reserves.