Commodities - JULY 29, 2021

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Consumers and central banks counterbalance softer ETF inflows to produce stable Q2 gold demand

by Andrea Zander

Consumer demand in gold increased in the second quarter of 2021 but some investors were less bullish, according to the World Gold Council’s latest Gold Demand Trends report. The two forces helped create a gold demand of 955.1 tonnes over the quarter — in line with the equivalent period last year (960.5 tonnes).

Between April and June, most traditional indicators of consumer gold purchasing were positive. Bars and coins — a category of physical gold products overwhelmingly bought by retail investors — saw a fourth consecutive quarter of year-on-year gains, with 243.8 tonnes purchased over the three-month period. Meanwhile, consumers bought gold jewelry with a combined weight of 390.7 tonnes — 60 percent more than the equivalent quarter last year.

While both consumers and retail investors were purchasing again, institutional investors were less consistent. There were only modest net inflows of 40.7 tonnes during second quarter into gold Exchange

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