A slew of experts agree that gold is likely to post sky high gains in 2022. This has been a recurring theme, with investment firm Blackstone’s annual forecast issued at the start of January setting the tone. The forecast is bullish on gold, describing record new highs as ‘probable’. It sets expected gains as high as 20% over the course of 2022, due to the persistent presence of inflation and increasing volatility; two market conditions that remain in place today.
CEO Byron Wien and chief investment strategist Joe Zidle say that gold will acquire new safe haven status in 2022 – while their analysis took place before the Russian invasion of Ukraine, this prognosis is even more pertinent in the aftermath of the military action, giving further credence to this expectation and perhaps even suggesting that a 20% increase could be on the conservative side.
“The price of gold rallies by 20% to a new record high,” say Zidle and Wien. “Despite strong growth in the U.S., investors seek the perceived safety and inflation hedge of gold amidst rising prices and volatility. Gold reclaims its title as a haven for newly minted billionaires, even as cryptocurrencies continue to gain market share.”
Blackmore isn’t the only firm which expects gold to gather momentum as the year goes on. Since gold raced out of the starting blocks into a New Year full of promise in January, a plethora of investment firms, analysts and financial institutions have lent their support to gold being stronger than ever and more in demand than ever throughout 2022.
