The gold market has increased in order to reach its highest level since 2020 on March 8th as investors seek secured assets in response to Russia’s conquering of Ukraine.
At the end of 2021, the gold price reached $1,828.60 an ounce and declined by 2.9% for the year, while investors tended to avoid metals in anticipation of higher interest rates.
“The war in Ukraine has significant and obvious implications for commodity prices, which could lead to a more persistent inflationary shock. For the time being, direct implications of the conflict as a growth shock are more limited in the US, given that direct trade flows are marginal. But indirect implications are more relevant, as ongoing disruptions to supply chains are likely to have a spillover impact, while inflation is also likely to act as a tax on consumers. In turn, the market continues to price-out a 50bp Fed hike for March, but the implications for the subsequent rate path are less clear.”
Our highly professional team persisted that the simple moving average (SMA), together with the exponential moving average (EMA), and the moving average convergence divergence (MACD), appeared as a “buy signal,” which means it is a signal that there were upward-shrift probabilities in the graph. It was questioned whether the investors needed to be more discreet on risk management in order to manage their investments.
According to Canada’s Scotiabank and our team agreed with the same expectation for the long-term investment, the gold price could average $1,850 per ounce in 2022 and dramatically decrease to $1,700 per ounce in 2023.
Furthermore, Australia and New Zealand Banking Group (ANZ) analysts strongly supported the gold price’s longer-term outlook.They have concurred that the gold price could be promoted to $1,750 by the end of June 2022 and $1,600 per ounce by the end of December 2022, which averages $1,725 for the year. They have forecasted that the price could degenerate further to $1,400 by the end of September 2023 and average $1,458 next year.
Moreover, the analysts at Dutch bank ABN Amro were also bearish in their gold price prediction for 2022, expecting the gold price to average $1,500 and then decline further to $1,300 in 2023.
Is it a good opportunity to invest now?
Our professional analysts team have mentioned the uncertainty of the geopolitical situation and other factors that have a high risk of fluctuating gold prices in the market. It depends on each investor’s risk tolerance. According to our analysis and other analysts’ opinions, please bear in mind that past statistics are no guarantee of future returns.
Published 24/03/2022
By Ashley Jones
