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COMEX Gold futures moved up towards $1780 per ounce on steady buying support. The World Gold Council (WGC), stated in a latest update that rising income is the most powerful driver of Indian gold demand in the long term. This bodes well for gold demand as the economy is set to benefit from a demographic dividend: the IMF forecasts per capita GDP growth of 23% between 2022 and 2026. But while India is the second largest consumer of gold, its per capita consumption is low. Support from such measures is currently lacking as policy makers view gold demand solely through the prism of imports. While this is a long term dynamic, the time of the WGC update has shifted the overall focus back on Indian demand just as it is recovering from the hit following the Covid-19 pandemic.

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