Mubasher: Global demand for gold will hit its highest level in four years this year, as a decline in purchases by central banks is eclipsed by higher demand for the precious metal among jewellery makers, Reuters reported, citing an industry report.

Global consumption of the yellow metal is expected to reach 4,370 tonnes in 2019, the biggest figure since 2015, while it is fractionally higher than 4,364 tonnes recorded last year, consultancy Metals Focus was quoted by the news agency.

Gold prices would average $1,310 per ounce this year, the highest since 2013, the industry group predicted in its Gold Focus 2019 report. This compares with last year’s average of $1,268 per ounce.

Moreover, the US Federal Reserve’s decision to end interest rate hikes, political and economic uncertainties worldwide would help boost gold market, while a buoyant dollar would keep a lid on gains.

Gold demand for jewellery is set to climb 3% this year to 2,351 tonnes, boosted by surges of 7% in India and 3% in China, versus lower consumption in the Middle East, Metals Focus said.

Meanwhile, official sector purchases of the precious metal would drop 9% this year to 600 tonnes, after soaring nearly 75% last year as central banks sought to diversify their reserves.

Due to higher mining output, recycling as well as producer hedging, gold supply would advance 1% to 4,707 tonnes, the consultancy said.

By 10:46 am GMT, spot gold declined 0.15% to $1,290.40 per ounce, while US gold futures fell 0.29% to $1,294.70 per ounce.