For those who don’t have the time to study the market for a gold price forecast, this U.S. Money Reserve report contains valuable information. Its projections for the next two years show the price of gold will rise to about $1,670 USD. The price may then continue to climb to a high of 2,075 USD. Inflation is the biggest factor that will affect gold prices, so it will be important to consider the economic recovery and inflation levels.
ANZ expects gold prices to stabilize in the first half of the year, but later in the year, the US Federal Reserve is expected to start raising interest rates. With this, support for the precious metals sector will decline. The J.P. Morgan Global Research report expects that gold prices will fall to around $1,750/ounce by the end of 2022. But the price of gold will likely rise significantly by then, so it is best to be aware of the volatility in the market.
Another factor that can influence the price of gold is the outbreak of the Coronavirus. Although there are no reports yet of a global outbreak of this virus, the IMF expects global economies to stabilize by the end of the year. By the end of the year, investors will be expecting a gradual decline in gold prices. However, events that increase volatility in 2021 could drive the price of gold higher. The effects of this increase in volatility could be attributed to loose monetary policies and low interest rates.
Aside from the coronavirus, the next big factor that could affect the price of gold in the near future is monetary policy. While gold prices have already been affected by the recent pandemic, monetary policy will continue to be a major issue. Despite this, governments are talking about reinstating lockdowns, and some have imposed short-term ones. This will make things more difficult for a struggling economy, and push the price of gold even higher.
Central banks are now buying gold reserves to keep them in check. This will keep the price of the precious metal at a high level. The central banks will continue to buy gold as a hedge against inflation, which should further boost gold prices. But the main reason for this hedging strategy is the lack of other investment opportunities. For the moment, gold is not a good option for investors because it will lose its value. Aside from the ETF, investors should also consider the underlying economic fundamentals.
In the meantime, central banks have stopped buying gold. They have added it to their reserves, which is a good sign for the price of the precious metal. The gold price forecast for this year has the latest trends and information on this precious metal. There is no clear consensus about where the price of gold will be in 2022, but it should be at least a little higher than where it is now. And while the central banks may have to keep buying the precious metal, they are not likely to stop the purchase altogether.