Gold could test new highs of $2,100 an ounce this year, according to an analyst at fund management company Fat Prophets. We provide details as Cryptokoin.com …
David Lennox gave his new forecast for gold price
David Lennox, in a statement, weakness in the US dollar and inflation are some factors that are likely to increase precious metal prices, he said. He stated that we think that the price of gold will be tested at its all-time high during 2022, but we do not see that the price will go beyond this level once it reaches there. According to the data, the price of an ounce of gold hit a record level of $ 2,063 in August 2020. At the time of writing in Asia, it is trading at about $1,815.
Lennox stated that all the conditions are met for the US dollar to fall, although this has not happened yet. He added that weakening the dollar would be a “bounty” for the precious metal. Meanwhile, he said inflation in the US is close to 6 percent from 1 percent. Gold is seen as a hedge against inflation and gains in value as the dollar falls. Therefore, the analyst uses the following statements:
We believe that the high momentum in inflation and the low US dollar will push the gold price higher in 2022.
Lennox said geopolitical tensions between major military powers could also raise precious metal prices sooner than expected. In particular, he drew attention to the tension between Russia and Ukraine. He thinks that if such an event occurs, then the gold price will have a very significant reaction. He suggests that his target of $2,100 may also be seen sooner or later.