Structural economic reforms in key emerging markets are likely to boost consumer sentiment and in turn strengthen demand for gold jewellery, said the World Gold Council (WGC).

In its February 2019 Gold Investor report, WGC said emerging markets account for around 70 percent of gold consumer demand, led by China and India. Economic changes are taking place in both countries that are seen to promote growth and income levels.

According to the council, India is modernising its economy and reducing barriers for commerce and promoting fiscal compliance. The country is expected to grow by 7.5 percent in 2019, outpacing most global economies. “Gold is well positioned to benefit from this expansion, as there is an unequivocal link between jewellery demand and growing consumer wealth,” noted WGC.

China, for its part, is seeing rising income levels too, thanks to various government programmes aimed at delivering long-term growth such as the “Belt and Road” initiative.

Economic recovery has likewise resulted in positive consumer demand in the US and parts of Europe.

“Overall, therefore, we believe that gold jewellery demand will benefit from positive consumer sentiment in 2019. Even if uncertainty affects confidence in certain jurisdictions, global demand should still increase marginally,” the council said.