Gold prices saw a solid rise, breaking above $1,800 on the last trading day of 2021. On the other hand, the precious metal closed 2021 with a loss of about 4%. However, individual investors remain significantly bullish on gold prices next year. Survey results of individual investors and analysts’ expectations for gold prices from 2022 Cryptocoin. com we have compiled it for its readers.
What do the gold prices survey results show?
It has been a relatively disappointing year for the highly volatile gold market. That includes the sudden crash in August that saw the price drop below $1,700. Gold prices struggled to catch the bulls’ attention even as real interest rates fell into historically negative territory amid extraordinary inflation pressure.
Analysts say the rise in consumer prices last year was met with expectations that the Federal Reserve will raise interest rates sooner than expected. At its December monetary policy meeting, the US central bank signaled that it would end monthly bond purchases by March and could raise interest rates three times in 2022.
However, US monetary policy does not scare off many individual investors, who are taking a significantly bullish position on gold as we enter the new year. A clear majority of Main Street investors expect gold prices to hit new record highs in 2022, according to Kitco News’ annual outlook survey. Nearly 3,000 people participated in this year’s online survey. Of these 1,605 people, 54% predict gold prices to be above $2,000. 20% of respondents think that gold will be traded between $1,900 and $2,000. The results show that only 12% of respondents said gold prices will remain relatively stable in the current range of $1,800 to $1,900, while 5% of prices1. He says it will cost between $700 and $1,800.
Analysts are divided on the future of gold
A few bear market predictions have come to the fore in recent weeks. Analysts at J. P. Morgan Research say gold prices could average around $1,520 by the fourth quarter of 2022. Meanwhile, Georgette Boele, senior FX and precious metals strategist at the Dutch bank, predicts gold prices will drop to $1,500 by the end of next year.
Wall Street analysts do not have a clear consensus on where gold prices will go next year. Many analysts point out that next year’s rate hikes may put pressure on gold prices, but most of the bad news is priced in.
Many banks predict that gold prices will be traded in a fairly wide range, between $1,800 and $2,000. Real interest rates continue to be the most important factor driving the gold price in 2022. While the Federal Reserve is looking to raise interest rates three times next year, many economists expect inflation to stay above 4%, meaning real rates will remain deeply in negative territory. Almost all economists predict that the Federal Reserve will lag well behind the inflation curve in 2022.
Among the bull banks, Goldman Sachs is one of the most optimistic. In November, analysts predicted that prices would rise above $2,000 by the end of the year. Wells Fargo is also taking a bullish position over gold next year, seeking $2,000 as precious metal games catch up with the rest of the commodity complex. According to John LaForge, head of real asset strategy at Wells Fargo gold, gold will be sensitive to US monetary policy in 2022. However, he notes that it is also unlikely that the Federal Reserve will adopt overly aggressive monetary policies.
