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Follow on Google News | Gold Report and Trend for Aug 2021By: xbullion This report will address remarkable trends in the precious metals industry, but with laser focus on the demand and exchange-traded funds. Here we go: Demand Declined By 60% There was a sharp decline in the demand for gold in the general market. Not only gold but the entire precious metals market dropped by 60%. What could have caused this? Some analysts opined that this occurred due to how most coins in the cryptocurrency industry were in their ATH this year. On a keener analysis, the ripple effects of Covid-19 bounced back on the bullion industry. This was why investors had to invest in other industries, which caused a deficiency in the global demand for gold. Be that as it may, some investors were still buying more gold even during this period. However, the demand of a few fractions could not fill the gap for the other investors. Interestingly, the more recent awareness of gold as a safe haven during or post-Covid posits strong demand recovery. According to some BBC updates, one ounce of gold may hit $2k soon. Gold ETFs Due to the sharp decline in demand, gold exchange-traded funds lost almost $7 billion between January and June this year. The major inflows came from Asian funds. Asia alone adds more than 13% growth to the global gold market. On the other hand, North American and European funds gave too much outflow in the first quarter of the year. Fortunately, the inflow from Asia helped their recovery during the rebound. Among European funds, German funds had an inflow of 27.2 tonnes – which is worth $1.6 billion. Statistically, this represented almost half of the inflow in Europe. Concerning African funds, South African ETFs lost over 75% of their value in the second quarter of the year. This value is 2.3 tonnes of gold, and it is worth $136 million. Till now, analysts could not pinpoint the exact reason behind this bearish trend. All in all, Goldhub submitted that ETFs had a net outflow of 129.3t in the first half of the year. On a year-to-day basis, Asian funds have grown by 14%, and low-cost ETFs by 40%. Concerning the possible recovery of gold production after being hit by Covid-19, some experts after careful analysis have predicted a steady 5.5% recovery in 2021. Outlook The year 2021 is quite a peculiar one in the industry. Even central banks grew more interest in stocking their foreign reserves with gold, and global purchase of jewelry is on the rise. Indeed, there is much more to unfold in the rest of 2021. If you don't want to miss out on subsequent trends in the gold industry, follow xbullion (http://xbullion.io) on Twitter (https://twitter.com/ End
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