In its latest report, the World Bank notes that the Precious Metals Index fell 3% in the third quarter of 2021. He notes that this is due to lower investor sentiment driven by higher real interest rates and a stronger US dollar, as well as lower physical demand. In the forecasts for the future gold prices, the average price is expected to return to the average level (5% higher) in 2022, with expectations of tightening monetary policy. There are some upside risks to this outlook. These include the threat posed by Covid variants, rising geopolitical tensions, and more persistent inflation than expected. Evaluations of other precious metals, including gold prices, included in the report, cryptocoin.com we have prepared for you.
According to the report, gold prices will rise slightly in 2021 before falling in 2022.
The report states that gold prices have fallen, partly due to the decline in investment demand due to the rise in interest rates. Yields on 10-year Treasury Inflation-Protected Securities (TIPS) rose 10 basis points in September, and the dollar strengthened as the Federal Reserve signaled that it would begin reducing bond purchases before the end of the year. Gold-backed exchange-traded funds (ETFs) fell sharply in the quarter, led by outflows from North American investors. Meanwhile, central banks have also reduced their gold purchases in recent months. On the other hand, strong jewelry demand in China and India provided some relief for gold prices. According to the report, gold prices will increase by 1.5 percent on average in 2021, before falling by 2.5 percent in 2022, driven by higher interest rates.
The bank says that the decline in silver is due to similar factors as gold. Since the second half of 2020, there are early signs that industrial demand, which supports silver prices, is beginning to decline. China’s manufacturing PMI fell below 50 in August and September, indicating a contraction in industrial activity, while Japan’s PMI was lower and well below the global average. China and Japan are among the major producers of silver-containing products such as electronics, solar panels and photographic equipment.
Finally, in precious metals, platinum has struggled due to weak demand from the automotive sector. The shortage of semiconductors has caused a decline in global automobile production and therefore autocatalyst demand, which accounts for more than a third of platinum demand. Automakers warn that the global semiconductor chip shortage will likely extend into 2022. On the supply side, South African mines are operating normally after production was disrupted last year due to pandemic shutdowns and plant outages. The report states that the recovery in supply, along with declining demand, is likely to put downward pressure on prices, and platinum prices are projected to fall 9 percent in 2022 after a 25 percent increase in 2021.
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