Gold: Jewelry Demand Returns in China and India

China and India are by far the largestconsumers of gold in the world. Asian jewelry demand is price sensitive, whichmeans demand typically increases on price weakness. Gold demand in India andChina is showing signs of recovery after having been decimated in 2020.

The World Gold Council and Reuters report thatIndian gold imports were up 45% and 72% in December and January, respectively.Metals Focus shows Chinese jewelry sales returning to normal in yuan terms inthe fourth quarter of 2020, while tonnages appear to be trending towards normalin the first quarter of 2021. This improving Asian demand should providesupport for gold.

MVIS Global Junior Gold Miners Index

03/31/2020-03/31/2021

Source: MV Index Solutions GmbH. All values are rebased to 1,000. Data as of 31 March 2021.