Fat Prophets analysts say gold may test new highs

Gold A resource analyst at the fund management company Fat Prophets said that this year may test a new high of $2,100 per ounce.

Dollar David Lennox told CNBC that weakness and inflation are some factors that may boost precious metal prices “Asian Road Signs” on Monday.

“We do think that throughout the course of 2022, we will see gold prices test all-time highs, but once we get there, we won’t see it much more than that,” he said.

According to data from data provider Eikon, the price of gold closed at a record $2,063 in August 2020. The trading price in Asia on Wednesday morning was about $1,814 per ounce.

We do believe that the high momentum of inflation and the lower US dollar will push gold prices higher in 2022.

David Lennox

Analyst, fat prophet

Lennox said that it looks like everything is in place for the dollar’s fall, but it hasn’t happened yet. He added that if the U.S. dollar weakens, it will be the “gospel” for gold.

at the same time, U.S. inflation rate is close to 6% ——Rising from about 1%, he said.Gold is seen as a tool to hedge against inflation and appreciate as the U.S. dollar depreciates, but Its past track record is uneven.

He added: “We do believe that the high momentum of inflation and the lower U.S. dollar will push the price of gold higher in 2022.”

Lennox said that geopolitical tensions between major military powers may also push up gold prices earlier than expected.

especially, Russia’s military presence on its border with Ukraine He said that this is “a focus, and it may soon become a catastrophic thing.”

“If this happens, then we will see a considerable response from the price of gold, and our… $2,100 per ounce [target] I might get here soon,” he added.