In newly released research from the World Gold Council, analysts claims that although the precious metal is set to face some difficult headwinds over the course of the year, there is a solid support that promises to hold prices at an attractive level.
2021 wasn’t the best year for gold, with prices falling by almost 4%, disappointing gold bulls across the country, but the outlook for 2022 will see a renewed interest in the precious metal, attracting many new investors to the market.
In the report, WGC have claimed that gold’s potential will grow as the first-rate hike from the U.S central bank looms ever closer. The precious metal will be sensitive to rate hikes, but it shouldn’t be seen as a deterrence to would-be investors looking to cash in on the performance of gold in 2022.
As the report claimed, “In years when inflation was higher than 3%, gold’s price increased 14% on average. Further, in the long run, gold has outpaced U.S. inflation and moved closer in pace to money supply, which has significantly increased in recent years.”
