Regional Banking Group Emirates NBD, gold prices this year, especially the Federal Reserve in the United States, including global central banks may fall by hardening the monetary policy, he said. Kriptokoin.comWe transfer the details as…
Emirates NBD drew attention to the factors affecting gold prices
Emirates NBD said that the economic impact of Covid-19’s Omicron variant was much less than feared at the beginning, and that gold prices look unlikely stable. Since the discovery of the much more infectious Omicron variant, gold prices have fluctuated from the highest levels of around $ 1,870 to $ 1,770, and so far spent most of 2022 at $ 1,800. According to experts, as the threat to global growth seems to be decreasing – large economies like China, even if the zero Covid policy maintains the charm of a shelter -like shelter.
Gold, even if Omicron does not react to the diminishing risk, another striking threat to gold prices is the change in the harsh attitude towards the Monetary Policy, especially the FED, from the global central banks, especially the Fed. According to experts, the Fed seems to be clear that politics will enter into an effort to normalize – four interest rate hikes are expected to start from the March meeting this year. Emirates NBD, gold last year, spot prices decreased by 3.6 percent in dollar terms and US inflation an average of 4.7 percent in an environment, “Hedge” feature can not fulfill the feature, he said.
For the year 2022, the estimation of $ 1,675 has arrived
Emirates pointed out that NBD, FED and other central banks are at risk of aggressive action to combat inflation. According to the bank, as investors move away from risky assets such as stocks or other commodities such as gold, this scenario will often be positive for valuable metals in the short term. However, they think that the steps taken by Fed should be alert against the risk of disrupting the market. The Bank uses the following statements:
We expect gold prices to fall to $ 1,675 with an average decrease of 7 percent compared to annual 2021 levels in 2022. For other precious metals, we expect the average prices to be lower than 2021, because higher returns distract investors from commodities.