Page 12 - Bullion World Issue 9 January 2022
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Bullion World | Issue 09 | January 2022
Gold and Currency Outlook
for the year 2022
GOLD TO ADD GLITTER IN Mr Ram Pitre,
Equity-Commodity & Currency
2022? Strategist, ECO FIN Consultant LLP
Spot gold (XAU/USD) prices are Despite a notable improvement in the market’s broader
consolidating close to monthly appetite for risk as Omicron-related fears about
highs just under the $1830 mark, potential economic disruption and hawkish policy shifts
have jumped from earlier weekly at major central banks including the Fed, ECB and BoE,
lows in the $1785 area after finding spot gold is on course to post a healthy monthly gain
support at the 21-day moving of about 2.5%, having rebounded more than 3.5% from
average as US real yields slid. earlier monthly lows under $1760.
The new year will be filled with uncertainty as the
Federal Reserve is likely to tighten its monetary
policies. At the same time, the inflation threat continues
to grow, which means real rates will remain in low to
negative territory.
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