Demand for gold will weaken this year as a surge in purchases by investors will not offset a dramatic fall in consumption by jewelers, industry and central banks, reported Kitco and Reuters, citing an industry report by consultancy Metals Focus.
Gold supply would decline by only 1 percent to 4,762 tonnes, leaving the market oversupplied by 690 tonnes, the seventh consecutive annual surplus and the biggest since at least 2011.
“The outlook seems less rosy for gold’s physical demand,” Metals Focus said. “A double digit-decline in jewelry fabrication is inevitable, and we expect the global total will fall to its lowest point in more than 30 years.
“Most other areas of fabrication demand are also expe