Performance of Gold in 2022: Should you buy, hold or sell your gold investments?

Gold as an investment 2022!

Performance of Gold in 2022

A rise in interest rates by central banks and the contrasting impacts of continuous high inflation have affected the gold market greatly. As the US dollar hit the maximum in 20 years, the gold market price dropped to the lowest in the past quarter on May 13th. The latest change in the price of gold seems to be the impact of the fall in the Japanese Yen (JPY) and the US dollar (USD). 

For years, gold has been among the most reliable forms of investment but the constant fall in the price of this precious metal has made investors uncertain regarding its returns. So the question arises about the scope for gold investment for the remaining of 2022. Should an investor consider gold as an option?

In this article, we will share the current drivers of the gold rate along with the gold price forecast done by expert commodities analysts. So without further delay, let’s get started. 

Gold Future Prediction from the Technical Perspective

According to the US brokerage Zaner, there does not currently seem to be a certain bullish fundamental theme to provide hope to gold’s bull camp. Further, technical analysis by the firm held on 16 May demonstrated that momentum studies continue to be bearish but are currently at oversold rates and are likely to support reversal action if such a thing takes place. 

Gold Price Forecast 2022

According to several financial analysts, the price of gold will possibly fall in the long run. Further, the Australian bank ANZ has predicted that the price of physical gold can decline to the level of $1,600 by the end of next year. Close to this, the projections by Scotiabank suggest a price of $1,700 by 2023. 

Should You Invest in Gold Now?

The price of gold is highly dependent on several aspects, including the way in which geopolitical pressures grow and how financial tightening affects the world’s economy. 

A few investors may choose to invest in gold to diversify their portfolios. However, if the option of gold as an investment is suitable for you depends on your ability to afford that degree of risk and whether you anticipate it to drop even more or rebound. 

The Bottom Line

When planning to consider gold investment this year, it is crucial to remember that the high volatility of the market makes it challenging to provide long-term predictions. Thus, the predictions offered by algorithm-based forecasters and analysts may be incorrect. 

Our recommendation to you is to always perform research carefully and consider all possible aspects associated with the stock market. Notice the most recent expert opinions, fundamental and technical analyses, news, and market trends in order to make the decision of investing in gold. One thing you must invariably keep in mind is that the previous performance of a commodity does not insure its future returns. Lastly, on no account should you invest funds that you cannot bear losing. 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

M Stock

NEWSLETTER

Related Article

Premium Articles