• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Markets Commodities

Why demand for gold is so high right now with price range within $2,000 an ounce

Olumide Adesina by Olumide Adesina
February 2, 2023
in Commodities, Exclusives, Markets
Why Gold's demand is so high right now, within the range of $2,000 an ounce
Share on FacebookShare on TwitterShare on Linkedin

Demand for the shining yellow metal surged to its highest level in more than a decade in 2022, spurred by “colossal” central bank purchases that highlighted the asset’s appeal as a safe haven. Demands from retail investors have also helped to rally prices.

According to the World Gold Council, global central bank purchases reached a 55-year high last year, driving a rise in annual gold demand of 18% to 4,741 tons, the highest level since 2011.

In the second half of the year, central banks bought gold at a historically high rate. Many observers relate this trend to a desire to diversify reserves away from the dollar after the US froze Russia’s dollar-denominated holdings as part of its sanctions against Moscow.

RelatedStories

Gold

Gold hits record $3,500 as investors drop dollar amid fed controversy 

April 22, 2025
Gold

Gold breaks $3,300 mark, increases over 26% so far in 2025 amid weakened dollar and trade squabbles 

April 17, 2025

Retail investors’ gold demand: Additionally, retail investors poured money into the yellow metal to hedge against excessive inflation.

As the Federal Reserve’s decision to keep raising interest rates hurt the value of the dollar and fueled concerns about a likely economic downturn this year, gold prices surged to a nine-month high on Thursday.

Gold performance this week: This week, gold did significantly better than its counterparts, with the Fed meeting adding to the precious metal’s appeal as a shelter. After the Fed raised interest rates by a relatively modest 25 basis points (bps) and acknowledged its progress against inflation, gold prices increased by more than 1%. However, the central bank acknowledged that it is unclear when interest rates will reach their high.

  • This raised anticipations that the Fed would stop raising interest rates by the middle of 2023 and maybe lower them by the end of the year as U.S. economic growth slowed. A situation like this is probably advantageous for gold.
  • Gold futures surged to $1,969 per ounce in the early hours of Thursday, while spot gold increased 0.2% to $1,954 per ounce.
  • The dollar’s rapid decline to a level not seen in over nine months relative to a basket of currencies corresponded with gold’s climb.

Impact of ECB’s policy move: The expectation of interest rate increases by the European Central Bank and the Bank of England, which supported the euro and the pound, put more pressure on the dollar. Rate increases of 50 basis points are anticipated from both banks as they work to rein in excessive inflation.

However, increasing interest rates are also projected to put further pressure on global economic growth, which boosts gold’s image as a safe haven when combined with perceptions of a weaker dollar.

What you should know: Due to $3 billion in annual withdrawals from exchange-traded funds that are backed by gold, rising interest rates caused gold to decline from a record high above $2,000 per troy ounce in March of last year to just around $1,600 per troy ounce in November.

  • Gold investment demand climbed by 10% to 1,107 tons last year although gold ETF (exchange-traded fund) holdings experienced less outflow in 2022 than in 2021.
  • 2022 saw a 3% decline in jewellery consumption to 2,086 tons, with the majority of the deterioration occurring in the fourth quarter as gold prices increased.
  • In 2022, the total annual supply of gold increased by 2% to 4,755 tons, with mine production reaching a four-year high of 3,612 tons.
  • being said, it’s imperative to be aware that the precious metal normally declines when interest rates are increasing and the dollar is strong, in part because gold is priced in U.S. dollars even though the majority of the demand comes from outside the U.S. This lowers the purchasing power of non-American buyers and hurts the demand for gold around the world.

 


Follow us for Breaking News and Market Intelligence.
Tags: Gold
Olumide Adesina

Olumide Adesina

Olumide Adesina is a financial market writer, analyst and investment trader. Message Olumide on Twitter @Olumidecapital

Related Posts

Gold
Commodities

Gold hits record $3,500 as investors drop dollar amid fed controversy 

April 22, 2025
Gold
Commodities

Gold breaks $3,300 mark, increases over 26% so far in 2025 amid weakened dollar and trade squabbles 

April 17, 2025
Gold
Commodities

Gold acts as investors refuge, best quarter since 1986

March 28, 2025
Gold
Commodities

Gold crosses $3k for the first time amid trade tensions and rate cut speculations

March 14, 2025
Gold
Commodities

Gold on a rampage for 7th straight week

February 14, 2025
U.S. President’s trade tariff threat increases Bitcoin,Gold appeal
Commodities

Gold hit a new high, Bitcoin falls below $100K again 

February 5, 2025
Next Post
Nigerian Entrepreneurs Thrive After Cascador 2022 Accelerator Participation

Nigerian Entrepreneurs Thrive After Cascador 2022 Accelerator Participation

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Nigeria’s top 10 stockbrokers by value of transactions in second quarter 2025 
  • Champion Breweries shares up 246.46% — How other beer companies are performing in 2025 
  • Rwanda reaffirms commitment to strengthening trade, aviation, and ICT ties with Nigeria 

Follow us on social media:

Recent News

Nigeria’s top 10 stockbrokers by value of transactions in second quarter 2025 

July 5, 2025
Champion Breweries Plc

Champion Breweries shares up 246.46% — How other beer companies are performing in 2025 

July 5, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics