2021 was a disappointing year for gold and silver. According to the Main Street online survey, two metals are among the best performers in the new year. The price of gold closed the year down 3.6%, recording its biggest annual decline since 2015, while silver closed 2021 with an 11.5% drop, the metal’s sharpest drop since 2014. World-renowned analysts interpret the market and make predictions for 2022. we too Cryptocoin. com to our readers.
Wells Fargo: Uptrend for gold price in 2022 looks clearer
Both metals failed to gain momentum over the past year despite the hot inflation rhetoric as the strong economic recovery and a more aggressive Federal Reserve outlook weighed on prices. Kitco’s survey results show respondents almost evenly split between gold and silver as the top two choices for top performers in 2022.
Of 1.569 respondents, 32.7% chose gold as the best performing asset for 2022, and 32.1% chose silver. The third favorite metal for next year was copper, with 12.9% of respondents betting on red metal. 9.2% chose lithium and 6.7% chose Bitcoin. Platinum received only 4.5% support, followed by palladium 2%.
Wall Street side is also in an uptrend on gold and silver in the long run. Analysts say gold is in a good position to recover with rate hikes, while silver has a chance to catch up after months behind gold. Wells Fargo makes the following assessment in its view:
After facing multiple headwinds in 2021, we believe gold’s bullish path looks clearer in 2022. Reducing stock market returns and inflation concerns could bring the market’s focus and flows back to the yellow metal next year. The dollar will not have a significant upside head in 2022 as it was in 2021. While we are optimistic that gold may finally rise in 2022, it may take some time for a stronger price trend to develop, which puts our 2022 end-of-year target range of 2,000-2. It causes us to drop it to $100.
Bloomberg Intelligence predicts gold will outperform other metals
BofA points to the upward movement of gold in 2022, while highlighting the positive outlooks for silver. “As gold markets focus on how higher rates can rise from tighter monetary policy, the yellow metal will recover,” the bank said, noting that sustaining 10-year Treasury rates above 2.5% is difficult. The bank predicts increased investment in solar panels will support silver prices.
Bloomberg Intelligence predicts that gold will outperform other metals in 2022, citing persistent trends supporting the precious metal. “The primary question for 2022 might be what is stopping gold from regaining the edge over most commodities,” said Mike McGlone, senior commodity strategist at Bloomberg Intelligence.
Our bias stems from the prevailing persistent trends that favor industrial over precious metals and the metals sector over broad commodities. Since the end of 2007, roughly 115% of gold’s gains are due to an unlimited supply of fiat money.
Gareth Soloway: There is even $3,000 potential for the gold price
InTheMoneyStocks. After largely ignoring the troubled inflation narrative for most of 2021, markets are beginning to fear increasing price pressures, Gareth Soloway, chief market strategist at com.
What I am Taurus is gold. It will be the biggest player here in 2022. From 2020 onwards you should see a movement towards the tops. There’s even the potential for a $3,000 price target underneath. You have to look at the inflation figures. I don’t think inflation will go back to 2%. The Fed will contract, but eventually people will turn to gold.
Silver will outperform the yellow metal, according to analysts
Analysts point out that if gold does well in the new year, silver has a better chance of outperforming the yellow metal. Daniel Hynes, senior commodity strategist at ANZ, shares:
There’s definitely a catch story built in there. To date, the price of gold has remained below its performance. As a result of this, you will see investors making the transition to the silver market.
Perth Mint’s head of listed products and investment research, Jordan Eliseo, states that the gold-silver ratio also points to silver’s superior performance:
The fact that the gold-to-silver ratio is roughly 80:1 alone suggests that if gold is going to rise, at least silver will go up and likely outperform gold. Silver also benefits if the commodities as a whole are in good shape. If economies are performing relatively strongly, they should benefit from an industrial perspective and the entire ESG transition occurring in the economy.