Although the gold market is in a long-term uptrend, it needs to go through the current consolidation period, according to an investment firm. In a report released on Tuesday, Haywood Securities analystsdollars says they have lowered their price targets for this year through 2022, but expect to see higher prices after 2023. Haywood analisdollar series’ evaluations and forecasts on gold price. Cryptocoin. com we have compiled for you.
Analisdollarserin forecasts for the coming years
Looking at the updated forecast, Haywood analystsdollars predict that gold prices will start at around $1,800 per year, down slightly from the previous estimate of $1,815. For the next year, the firm predicts that the average gold price will fall from $1,900 to $1,850. However, analystsdollarser are revising their previous forecast of $1,800 to $1,900 by 2023.
Analisdollarser states that gold is facing some tough headwinds in the near term from a stronger US dollar and rising bond yields. Bond yields rose as interest rates rose. Markets are currently waiting for the Federal Reserve to tighten monetary policy, which includes reducing monthly bond purchases before the end of the year and potentially raising interest rates by June.
“Gold has been successful in stagflation environments”
On the other hand, when looking at the bullish factors, analystsdollarser states that slowing growth and rising inflation create a positive environment for the precious metal. “As growth slows and inflation rises, we are concerned that China and the broader global may be ready for stagflation,” Analisdollarser says in the report. Analisdollarser underlines the following points in the report:
Historically, gold has been successful in stagflation environments as high inflation and market volatility support capital preservation, and low real interest rates support the opportunity cost and growth risk drivers. We believe that the precious metals complex is in a long-term uptrend and long-term macro k factors continue to be constructive. However, gold remains a tangible, tradable and durable store of value.
Analisdollar’s cool comments came after the gold market continued to struggle to attract sustained bullish momentum and remained stuck below $1,800. December gold futures were last traded at $1,792.70, down 0.78% on the day. While the gold price may struggle through 2022, the Haywood analisdollar series continues to see solid value in the low-value mining sector:
The mining industry is trading at historic lows relative to gold and the market as a whole, despite the strong fundamentals offered by the industry, including the free cash flow market return of around 6.85%.