In its “Golden Outlook 2022” report published today, the World Gold Council (WGC) stated that interest rate hikes may create headwinds for gold, but when we look at history, these effects can be limited.
WGC lists the two major upsides that the gold price may face in 2022 as high nominal interest rates, strong US dollar, and the supportive factors that will compensate for these negative effects are high and persistent inflation, market volatility associated with COVID and geopolitical tensions, central banks and jewellery. counted as strong demand from other sectors.
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