Gold jumped from $1,782 early 2022 to a high of $2,070, as tensions between Russia and the Western world peaked in the second week of March. What levels could be next for the precious metal, which is falling afterwards? TD Securities analysts shared their expectations.
Expected average price for gold: $1,863
cryptocoin.com As we previously reported, the precious metal was trading below $1,800 in early 2022. The value of an ounce of gold gained momentum in late February when war broke out between Russia and Ukraine and began to approach its 2020 peak levels. It then fell to $1,925 as geopolitical tensions over the war in Ukraine began to moderate somewhat. TD Securities strategists expect the price of gold to average $1,863 an ounce this year.
Experts also argue that if the US Federal Reserve’s (Fed) policy becomes much more aggressive, gold could fall below $1,800 by the end of the year. The Fed had increased the interest rate by 25 basis points as a result of a meeting it held in the past weeks. “Based on the pattern of market behavior over the past few years, we are seeing significant volatility and we expect the yellow metal to average $1,863 this year,” analysts said.
Fed’s attention is drawn to gold’s movements
Average prices are likely to be highest in the second half of 1-2022 as inflation remains at multi-decade highs, economic growth declines and the Fed appears to be behind the curve, according to TD Securities. According to the latest data, inflation was the highest in the last 40 years. On the other hand, analysts of the famous company say that if the Fed does not become restrictive, it may break a record:
The outlook worsens in the second half of the year as central bank policy becomes much more aggressive in the fight against inflation, suggesting that the yellow metal’s price could drop to just below the $1,800 low by the end of the year. If the Federal Reserve isn’t restraining, the yellow metal could test the record $3,100 (in current dollar terms) found in January 1980.
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