Page 16 - Bullion World Issue 9 January 2022
P. 16
Bullion World | Issue 09 | January 2022
Gold Outlook for the
year 2022
nominal yields and the potential for
rate hikes and stimulus unwinding
across the globe, as inflation rises.
On the downside, the ongoing risk
of new waves of infection and virus
variants, fears of stagflation and
negative real rates have offered
support.
As we start the new year, many
uncertainties remain. Waves of
COVID-19 outbreaks, supply-
chain challenges and geopolitical
tensions make forecasting trends
over the next 12 months a hard
task. Crucially, rising inflation and
the extent to which it is transitory
will have a profound impact on
monetary policy decisions and in
turn asset prices. In the near future,
this should be the main driver of
precious metals investor activity,
especially for gold. In the US, CPI
inflation recently topped 6.8%, the
highest since 1982. Prices have
also been accelerating in other
major economies. The mismatch
of high demand, in the aftermath of
unprecedented fiscal and monetary
Mr Harshal Barot,
Senior Consultant, Metals Focus
Unlike the stellar gains seen during break higher failed multiple times
2020, gold experienced choppy and the gold price eventually fell
conditions and saw a subsequent from over $1,900 in early June to
correction in 2021. After a record a low of $1,691 this August. Since
high of $2,075 in August 2020, gold then, the yellow metal initially
fell to a low of $1,765 by November recouped most of those losses but
that year, before closing near is now oscillating around $1,800,
$1,900. In doing so, gold achieved having lost about 3.6% intra-year
a 25% intra-year gain in 2020, the in 2021. On the upside, it has been
best since 2011. The start of 2021 capped due to a combination of a
saw further upside but attempts to stronger economic recovery, rising
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