Gold fiadollaryellow closed the year with the biggest loss in six years, and analystsdollarser points to the lack of investor interest as one of the main triggers behind the precious metal’s poor performance in 2021. We have compiled the 2022 gold forecasts and assessments of RBC Capital Markets, JPMorgan and the World Gold Council (WGC) analystdollar series for the readers of Cryptokoin.com .
2021 for gold prices was worst year since 2015
As globals recover from the Covid-19 pandemic, the inflation narrative has been greatly influenced by investors taking a risk-based approach. ignored. The yellow metal closed the year down 3.6%, posting its worst drop since 2015, when gold fell 10%.
2021 data for SPDR Gold Shares, the world’s largest gold-backed ETF, shows a similar trend. GLD saw its largest annual output in nearly a decade, losing approximately $14.1 billion in assets in 2021, corresponding to approximately 195 metric tons of bullion. That’s the biggest annual outflow since 2013, with more than $41 billion lost as gold prices fell from $1,700 to $1,180, according to figures provided by GLD.
Most asset losses occurred in the first quarter, which overlapped with the same moves in spot gold price. In the first quarter of 2021, GLD saw output of 150.5 tons. During this period, gold prices fell from $1,954 to $1,686. It also saw significant exits in the third quarter and 53 tons more were sold.
“There has been no investor interest in gold in the past year”
RBC Capital Markets commodity strategist Chris Louney said that tighter monetary policy and risky environment expectations are expected in 2021. he says that he is keeping investors away from gold:
There has never been a year in which interest in gold was intense. What really stood out for me was gold’s performance despite one of the most inflationary environments we’ve experienced lately. Gold has fluctuated in the $200 range this year, and we talked about a lack of investor interest for most of the year. If we look at gold-backed exchange-traded products, these are arguably the most relevant example, as they have dropped quite significantly.
Chris Louney adds that although the inflation narrative failed to boost the gold price in 2021, it still managed to find a footing in the gold price:
Inflation and some related macros headwinds managed to bolster yellow prices in the context of lack of investor interest. This at least helped solidify a foothold for gold throughout the year. But it wasn’t enough to raise the gold to the level that some cold bugs wanted or expected.
JPMorgan: Gold fiadolsyellow will decline steadily throughout the year
Gold fiadolsyellow major event that continues to put pressure on the Federal Reserve to complete its accelerated tapering plan by March and that was the plan to start raising rates once markets were pricing in at least three rate hikes for 2022.
According to analystsdollarser, who predicts that the Fed accelerated tapering especially in the last meeting, probably started to increase as early as March and will make three hikes next year, from a monetary policy perspective, it is more than positive. there is more room for gold to be negative. So in its 2022 outlook, JPMorgan notes that it has a bearish trend on gold due to the Federal Reserve outlook:
Ultra-compliant central bank policy easing will be the most obvious drop for gold and silver over 2022. Gold prices are expected to fall steadily throughout the year, averaging $1,765 in the first quarter. We estimate the Q4 average for the gold price to be $1,520. How about
However, the trend in gold-backed ETF holdings may be about to reverse with the latest WGC report showing a total inflow of 13.6 tons in November. Because it’s the first month of earnings since July. In the WGC analisdollarseries report, the following highlights:
Both North American and European gold ETFs contributed to November inflows, reversing the headwinds facing larger funds in these regions for much of this year. Year-to-date, gold ETFs have seen global outflows of $8.8 billion (167 tonnes) as major North American and some European funds lost their holdings in line with fluctuating gold prices.