In 2021, everything except precious metals rose in price: oil jumped in price by 55%, copper increased by 25% over the year, and inflation in the United States reached a 40-year high of 6.8%. At the same time, gold not only did not grow, but also lost about 4% in price over the year. In fact, there is quite a logical explanation for this. The gold market is under pressure from the tightening of monetary policy by the US Federal Reserve. Market participants fear that the beginning of a cycle of interest rate increases will inevitably play against gold. Which leads to the fact that the market begins to look for more profitable instruments. Many investment banks have already submitted their forecasts for 2022. In particular, JPMorgan expects an average gold price of $1,630 per ounce in 2022. Deutsche Bank is more conservative and expects $1,750 at the end of the year. The current price of an ounce of precious metal is $1808. However, there are also those who hold more positive views on the dynamics of gold, expecting its value in the new year at the level of $ 2000-2100 per ounce. Investors believe that the «fashion» for risky assets will not always be relevant, so when gold becomes a sought-after asset again, its value can easily grow by 15-20%. Especially after a bad year. There are many reasons that can change the vector of the direction of gold: there is an out-of-control inflation, new Covid strains and restrictions, as well as geopolitics and general tension in the world.
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