After a Turbulent Year, Here’s Where the Gold Price Is Now
The past year-and-a-half has been, unsurprisingly, something of a roller-coaster ride for the price of gold.
The precious metal started 2020 averaging $1,560.67 an ounce, according to Kitco, then rose until mid-March, when it fell to a low of $1,474.25 as governments worldwide began enacting stay-at-home orders because of COVID-19.
From there, the price of gold started climbing, rising every month until it passed the $2,000-per-ounce mark in August—its highest point in eight years.
It didn’t stay there long, dropping back down and finishing the year with a cumulative average of $1,769.64 an ounce.
This year hasn’t quite seen the peaks and dips experienced in 2020, but notable swings in 2021 include a high of $1,902.75 in June and a low of $1,683.95 in March, Kitco charts show.
According to Kitco, the gold price has averaged $1,803.57 per ounce so far this year.
The World Gold Council said the price of gold averaged $1,816.50 per ounce in the second quarter, only slightly higher than the first quarter and up 6 percent year-over-year.
Meanwhile, gold jewelry demand is working its way back up in some markets after being dealt a huge blow last year during the COVID-19 pandemic, WGC’s latest “Gold Demand Trends” report shows.
Global gold jewelry demand in Q2 was 60 percent higher year-over-year at 390.7 tons, but that’s compared with Q2 2020, when demand was “slashed” by the pandemic.
WGC noted the strong second quarter in 2021 was bolstered by global economic recovery and improving consumer sentiment.
While gold jewelry demand is improving, it still has a way to go before it reaches pre-pandemic levels, WGC added.
When compared with 2019, demand remains “significantly weaker”—second quarter demand is 26 percent lower than Q2 2019, and H1 demand is down 18 percent.
H1 demand of 873.7 tons was 17 percent lower than its 2015-2019 average in the six-month period, WGC reported.
On a positive note, the United States was one of the markets generating “considerable growth” in gold jewelry demand so far in 2021, proving to be more resilient this year.