In normal times, almost 65% of demand for gold comes from people wanting to buy jewellery, gold bars and coins. The beneficiaries of rising gold price are the gold-backed exchange-traded funds (ETFs) and gold mines. This is because gold ETFs back up part of their assets under management by buying physical gold with 99.5% purity. When fears of stagflation dissipated, gold prices fell by almost 50% to a low of US$1,061 in August 2015. History has shown that fears of a stagflation always slide away and gold prices come down when the economy recovers.

Source: The Star August 21, 2020 23:48 UTC