According to strategists at TD Securities, there is still a significant chance of a rise in the gold price in early 2022. Strategists predict that Fed Chairman Jerome Powell is not a hawk and will keep rates low for longer to reach full employment with economic data steering decisions. Evaluation and analysis of TDS strategists Cryptocoin. com for our readers.
“Gold will jump to the $1,875 region in the first half of 2022”
If data comes sluggish due to less liquidity and diminishing positive fiscal stimulus effects, Fed Chairman Jerome Powell will likely continue to signal a dovish policy slope for most of 2022, which will be positive for gold, according to TDS strategists. Strategists make the following assessment:
Post-Covid normalization may increase the labor force participation rate over time. The hope is that the resulting higher potential growth and low unemployment rate that isn’t accelerating may leave the Federal Reserve comfortable with keeping the economy warm for longer. This is a high-probability best-case scenario for gold, but it slows inflation.
Political risks associated with the pending US midterm elections, US financial drift, fairly stable central bank gold purchases and a significant slowdown in the US and global recovery are additional factors that could rekindle investor interest in gold, according to TDS strategists. Strategists make the following predictions based on this:
These factors will help the gold price rise to the $1,875 region in the first half of 2022, according to our predictions.