Higher interest rates to challenge gold in 2022

As central banks react to excessive inflation, greater rates of interest are more likely to cut back gold’s attractiveness in 2022.

Nonetheless, each nominal and actual rates of interest are more likely to stay at traditionally low ranges. And gold has tended to carry out higher in periods of excessive inflation.

New Covid-19 variants, and rising geopolitical tensions, are more likely to proceed to foster uncertainty amongst buyers. This may enhance the attract of protected haven belongings, partly offsetting the damaging impact

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