Geopolitical Tensions, Inflation Trigger 2022 Gold Rush
Gold prices rose above the 1,900 per ounce level on Monday, reaching a new 8-month high. Investors are rushing to boost the gold market, but analysts say it is not too late to enter. This step
Investors have long been leaning towards gold to protect against inflation, which has exploded to a 40-year high. However, gold serves as a safe haven and offers stability, resource conservation in times of geopolitical pressure. As Russian-Ukrainian military tensions hit a boiling point, investors are seeking gold security.
Concerns that the outbreak of war between Russia and Ukraine could send risky assets such as declining stocks have increased demand for gold, which is valuable for stability in times of crisis. If Russia invades Ukraine, crude oil prices are expected to rise amid Russian supply disruptions, adding to the current inflation problem.
Investors have been rushing to buy gold in recent weeks, with the price falling to 7 1,792.60 an ounce in late January. Since then? Gold rose 6.27% in less than a month.
Worried you missed the move? Will not.
“We never like to be late for trade, but it can be one of those times when it means chasing. The precious metal, despite moving, is still trading below its spring 2021 high of 90 1,909.90 and may be ready to break, ”said a February 19 Baron article.
“Investors are looking for a geopolitical hedge,” Matt Miskin, co-chief investment strategist at John Hancock Investment Management, told the Wall Street Journal on February 20. If the Russian-Ukrainian situation worsens, it could trigger a new all-time high for gold, Miskin said. In August 2020, Gold scored its all-time high of 0 2,051.50.
A February BofA Global Research Report agrees. The report said, “It’s time to buy more gold, especially if it breaks 1860/1880 because the new will follow all-time highs.” Gold has already traded above $ 1,880 an ounce, recently above $ 1,900. The BofA Global Research Report points to a new all-time high of 2,175 per ounce.
The gold is actually moved and the momentum is built up quickly. Although gold prices in the world market are sold in US dollars, analysts prefer to compare gold with other currencies for the spotlight trend – and there are more trends. Consider this: Gold reached a new all-time high last week, with the price in Japanese yen. Gold also rose to a 52-week high against both the euro and the Australian dollar.
If you work soon, it’s not too late to enter the 2022 Gold Rush.
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