Page 8 - Bullion World Issue 9 January 2022
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Bullion World | Issue 09 | January 2022
2022 Outlook for
Precious Metals
Ms Suki Cooper
Executive Director, Precious Metals Research
Analyst, Standard Chartered Bank
After a year where the entire expectation that economic growth
complex is down, precious metals will slow in 2022 versus last year
continue to face both demand and risks of Coronavirus variants.
and supply shocks; the macro We expect supply-chain challenges
environment adds an extra layer to ease in H2-2022 but demand for
of complexity to the outlook for industrial goods to remain strong.
2022. Losses have been led by We forecast that Fed tapering will
palladium, and gold has escaped end by April 2022 and then the
relatively unscathed. We see hiking cycle will be a short and
three key themes for the next shallow one.
12 months: (1) asset purchase
tapering and rate hikes; (2) the Our base case is additional upside
impact of semiconductor shortages risk to gold prices in the coming
on supply chains and supply chain months, followed by a moderation
challenges; and (3) the moderation from elevated levels later in 2022;
of pent-up demand given our but we note that gold could still be
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