Analyst expects global gold market demand to be fairly robust in 2023

KUALA LUMPUR, Feb 17 (Bernama) -- The global gold market demand is expected to be fairly robust in 2023 as compared with the previous year, following increasing buying interest from emerging markets, especially from the Asian countries, an analyst said. 

Mumbai-based Metal Focus principal consultant Chirag Sheth said demand from China is expected to grow, following the reopening of the country’s economic activities this year compared with a discouraging performance last year.

“We expect some bit of growth coming in from China while demand in India will continue its growth over the last two years since it has shown very good data.

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“Similarly, we expect the East Asian markets to also do well and the theme for this year in most of these markets is recovery from the pandemic with income growth and tourism picking up,” he told reporters on the sideline of the inaugural Malaysia Gold Conference 2023 here today.

Meanwhile, Sheth said the price of gold would continue to be volatile throughout the year due to several factors involving geopolitical tension and global inflation rates.

“We have seen in the past two to three years that the price of gold has become highly volatile because of the fluidity of situations around the globe.

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“Recently, we have seen gold price movement fluctuated between the gap of US$200 (US$1=RM4.43) and US$250 per troy ounce and the price volatility is anticipated to continue,” he said.

He said the market expected the gold price to hover between US$1,600 and US$1,800 per troy ounce this year.

Commenting on the percentage of circulation of gold jewellery, Sheth said the Asian region continued to hold the largest market share compared with western countries.

He added that western countries continued to provide refining and trading hubs while the consumption centre for gold, especially jewellery-based, is spread across the eastern region.

The one-day conference was organised by Malaysia Gold Association (MGA) with the aim to bring the local gold industry to greater heights.

-- BERNAMA