‘Gold demand may reach pre-pandemic levels in 2022’

Demand for gold is expected to reach pre-Covid pandemic levels in 2022 aided by higher savings, increased mobility and stable price levels, said Chirag Mehta, Senior Fund Manager-Alternative Investments at Quantum Mutual Fund.

Pent-up demand for gold started in 2021. “Even as the Fed is sounding more hawkish every day and Covid is most likely behind us, demand for the yellow metal is getting support from higher inflation, market volatility, US-Russia tensions over Ukraine and the drop in Bitcoin,” Mehta said in a report.

SPDR Gold Shares, the largest gold-backed ETF, recorded its biggest daily net inflow since listing in 2004 worth $1.63 billion in January. This clearly indicates investors’ interest in the yellow safe-haven metal.

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