Here’s why the demand for gold could reach its highest level in four years

File Reuters

UNITED STATES (VOP TODAY NEWS) — Demand and gold prices are reaching their highest level for several years, according to Gold Focus’s 2019 report from consulting firm Metals Focus. It is the jewelry sector that would contribute the most to this increase.

In 2019, gold demand is set to reach its highest level since 2015 thanks to increased consumption of this precious metal in the jewellery sector, says consulting firm Metals Focus in its Gold report Focus 2019 quoted this Monday by Reuters.

According to this report, a total of 4,370 tonnes of gold will be consumed this year compared to 4,364 tonnes in 2018.

Demand for gold in the jewellery sector will increase by 3%, offsetting a 9% drop in demand from central banks.

On the supply side, gold production will increase by one percent to 4,707 tons. Metals Focus also expects the precious metal price to rise to $ 1,310 per ounce, its highest level since 2013. Currently, it stands at $ 1,300 an ounce.

The consulting firm says the end of the US Federal Reserve’s interest rate hike could help raise the price of gold but a strong dollar could limit this trend.

This year, the Fed does not plan to raise its key interest rate further. Since Donald Trump took office, the US Federal Reserve has raised interest rates seven times.

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