![]() "It makes sense that the dollar price of gold is down about 10% in 2022, with the trade-weighted broad dollar index up about the same, but most scenarios may favor a resumption of enduring appreciation for the metal." The key question may be when," McGlone added. ![]() "Aggressive Federal Reserve tightening is a leading headwind for the price of gold in 2022, and if past trends are a roadmap, this too shall pass. euro gold spread is showing currency distress and suggests a potential catalyst for a gold bottom - an easing of Fed rate-hike expectations."Īnd as soon as there is a sign that the Fed is ready to ease, it would be an ideal time for gold to return to its rally mode. ![]() "Rising gold on a non-dollar basis is showing the kind of stress that may break the Federal Reserve's rate-hike trajectory," McGlone noted in his October metals outlook. But eventually, there will be a reversal. Global GDP is dropping dramatically after central banks synchronized their rate hikes in the global battle against inflation. Underpinnings are firming for the price of gold to resume the rally that started with that base." "Aggressive Fed tightening to address inflation and elevated asset prices - which is buoying the greenback, as the rest of the world tries to catch up - echoes trends about two decades ago. 28, dollar gold compares with respective gains of 5% and 10% for the euro and yen," McGlone said. euro-based is nearing levels that formed a lasting foundation for the metals price in 1999. "The disparity in dollar-denominated gold vs. gold in euros and Japanese yen as something to keep a close eye on. And Bloomberg Intelligence's senior commodity strategist Mike McGlone sees a similar pattern developing in 2022. ![]() The price bottom established in 1999 at around $250 was so solid that gold never returned below it again. (Kitco News) Gold is building a foundation similar to the one established in 1999, and once that price base is established, the gold rally will resume, according to Bloomberg Intelligence. ![]()
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