The main drivers of gold prices next year will be negative real interest rates, inflation expectations, gold's own upward trend and a weaker dollar.
As we all know, gold has a negative correlation with the DOLLAR, so will 2022 be the year of gold or the year of the dollar? Tim Hayes, chief global investment strategist at Ned Davis Research, is more bullish on gold.
The dollar index has remained at 96, weighing on gold, as the Fed begins to contemplate a more aggressive tapering next year and could raise interest rates twice. But will inflation change the outlook for gold next year?
Hayes noted that, in contrast to the DOLLAR, gold will have a solid base heading into next year, with new all-time highs likely to be reached after a consolidation since the all-time high in August 2020.
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