IC ARTICLE - GOLD not so precious in 2022?5 Jan 2022 12:11
CONCLUSION ...
It appears, therefore, that any concerns over inflation have taken a back seat, as the US Federal Reserve flags accelerated tapering and the prospect of multiple rate rises. In addition, it is likely that Joe Biden’s signature “Build Back Better” bill will not make it through Congress prior to the US mid-term elections, if at all. The Congressional Budget Office estimates that the bill would cost around $4.78 trillion through to 2031.
Despite the President’s protestations to the contrary, it is difficult to imagine that it would not have eroded household purchasing power, while further debasing the greenback. Profligacy on this scale would certainly provide additional support for the gold price, but the general economic outlook is clearly brighter – or at least less uncertain – than it was when gold touched $2,061 per oz in August 2020.
The consensus points to softening gold prices throughout 2022, but this is a momentum-driven market – and institutional investors tend to be somewhat skittish in this area. Indeed, some technical analysts believe that gold is now trading at a resistance point, so it is possible we could even witness some significant near-term gains if the $1,830 per oz mark is breached.
https://www.investorschronicle.co.uk/news/2022/01/04/gold-not-so-precious-in-2022/