Unsurprisingly, inflation remains the most important story going into 2022 in the gold market. cryptocoin.com As we reported on Friday, the U.S. Department of Labor said its Consumer Price Index saw an annual increase of 6.8 percent last month. That’s the highest in 39 years, and there’s room for inflation to rise further, according to some analysts and economists. So, how will gold be affected by these? What are the expectations?
US data continues to be important for gold price
Looking ahead, many economists expect inflation pressures to peak in the first half of 2022 and then moderate in the second half of the year; however, according to expert Neils Christensen, consumers can expect to see inflation well above historical norms. Economic forecasts expect inflation to trend between 4% and 6% next year. Economists and market analysts see 2022 as an important transition year as the Federal Reserve seeks to tighten monetary policies.
Due to the rising inflation threat, the markets expect the US central bank to raise interest rates in early June. According to the expert, markets expect a total of four rate hikes next year. So what does all this mean for gold? Most analysts find current market expectations too aggressive. Almost every economist expects the Federal Reserve to get ahead of the inflation curve in recent weeks.
There is still a lot of uncertainty in the global economy. According to Christensen, the last thing any central bank would want to do is risk making a policy error. According to many analysts, real interest rates will remain in low to negative territory next year due to inflation. According to the expert, as investors try to protect their wealth and purchasing power, interest in gold, which is experiencing a sluggish process, is expected to increase a little more in 2021.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.