<h1 class="ql-align-center">World Gold Council</h1><h2> </h2><h2>Context:</h2> <ul><li>A report released by the&nbsp;World Gold Council (WGC)&nbsp;has identified&nbsp;inflation as the strongest factor influencing gold demand in India&nbsp;in the short term.</li></ul> <h2>About:</h2> <ul><li>It is a nonprofit association of the&nbsp;world's leading gold producers.</li></ul> <ul><li>Headquartered in the UK, they have offices in India, China, Singapore, Japan, and the United States</li></ul> <ul><li>It works across all parts of the industry, from gold mining to investment, and its aim is to stimulate and sustain demand for gold.</li></ul> <ul><li>It helps to support its members to mine in a responsible way and develop the Conflict-Free Gold Standard.</li></ul> <ul><li>It covers the markets which comprise about&nbsp;three-quarters of the world's annual gold consumption.</li></ul> <h2>Gold and Economy Linkage:</h2> <ul><li>Gold was used as the world reserve currency up through most of the 20th century. The United States used the gold standard until 1971.</li></ul> <ul><li>The demand for gold increases during inflationary times due to its inherent value and limited supply. As it cannot be diluted, gold is able to retain value much better than other forms of currency.</li></ul> <ul><li>When a country imports more than it exports, the value of its currency will decline. On the other hand, the value of its currency will increase when a country is a net exporter. Thus, a country that exports gold or has access to gold reserves will see an increase in the strength of its currency when gold prices increase, since this increases the value of the country’s total exports.</li></ul>