Gold outlook 2022

Gold may face similar dynamics in 2022 to those of last year, as competing forces support and curtail the metal's price performance. Near term, the gold price will likely react to real rates in response to the speed at which global central banks tighten monetary policy and their effectiveness in controlling inflation. Yet, in the World Gold Council's view, while rate hikes can create headwinds for gold, history shows their effect may be limited, elevated inflation and market pullbacks will likely sustain demand for gold as a hedge, and jewellery and central bank gold demand may provide additional longer-term support.