J. P. Morgan thinks that the gold price is unable to withstand the Fed; and predicts that it will fall to pre-pandemic levels in 2022. Detail Cryptocoin. com.
Is gold going back to pre-pandemic?
The gold market will not be able to withstand the Federal Reserve’s plan to tighten monetary policy in 2022, according to commodities analysts at J. P. Morgan Global Research. In its recently published 2022 outlook report, the bank expects gold prices to fall to pre-pandemic levels by the end of next year. Analysts say:
The relaxation in ultra-compliant central bank policy will be the most obvious drop for gold and silver through 2022. Gold prices are expected to fall steadily to $1,520 in Q4 over the next year, while an average of $1,765 in Q1.
B forecasts come at a time when the Federal Reserve plans to end its monthly bond purchases by March and raise interest rates three times. Right now, markets are starting to price the first rate hike in May. But J. P. Morgan expects the US central bank to raise interest rates in September. The bank’s views on the subject are as follows:
Given the resilient economic environment, there is room for the curve to steepen briefly in early 2022, with 10-year yields expected to rise to 2% by mid-year and 2.25% by the end of 2022. Finally, long-term Ultimate yields are also expected to increase, but can barely return to the highs observed in late 2022 earlier this year.
At the same time, the J. P. Morgan US dollar is 1% next year. 6 is expected to increase. Looking at the economic growth forecasts, J. P. Morgan expects the global economy to grow by 4.8% and the US economy by 3.8% in 2022. While the US bank is down on gold through 2022, the bank is bullish on the rest of its commodity complex.
