Volume IconSomasundaram PR on how gold demand will pan out in 2022

The demand for gold jewellery hit a six-year high in 2021. Business Standard caught up with Somasundaram PR, Regional CEO, India, World Gold Council, to understand how the demand may pan out in 2022

ImagePuneet Wadhwa New Delhi

Q1: Can you shed some light on how the gold demand globally and in India has played out in the December quarter and in calendar year 2021?
  • Global rise in demand led by consumers’ appetite
  • Lack of spending avenues, softer gold prices saw consumers turn to gold 
  • Indian demand exceeded estimates in the December 2021 quarter

Q2: Given the US Fed meet outcome and possibility of a hike in rates, how do you see the demand for the yellow metal pan out in 2022?
  • Pent-up demand got released in 2021 
  • 2013 saw the best quarterly demand till now; 2021 even beat that
  • Gold price was 40% lower in 2013 compared to the current level
  • Higher savings, increased mobility and affordability to aid demand rise in 2022

Q3: Can you quantify the demand and price expectation in 2022?
  • Interest rates/ real interest rates, inflation to fuel demand rise in 2022
  • December quarter proves conventional wisdom about gold that as a safe-haven asset
  • Gold demand may go back to pre-pandemic and pre-demonetisation levels in 2022
Q4: How do you see the global central banks respond to this going ahead? And the gold ETF demand in India and globally?
  • ETF demand: Inflow of 9 tonnes in India
  • Global central bank demand was healthy in 2021 and expected be so in 2022

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First Published: Jan 28 2022 | 08:00 AM IST

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