(MENAFN) Based on the World Gold Council, gold, the valuable metal that investors resort to as a safe investment against inflation, is probably going to encounter two major obstacles this year: rising nominal interest rates and a presumably strengthened dollar value.
As stated by industry body's market outlook report for this year, there are other supporting factors, such as continuous inflation, market volatility connected to coronavirus, and the solid demand from other industries such as central banks and jewelry, may outweigh the negative influence of the two factors stated above.
Furthermore, the trade group added that “against this backdrop, gold’s performance during 2022 will ultimately be determined by which factors tip the scale. Yet, gold’s relevance as a risk hedge will be particularly relevant for investors this year.”
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