Gold faces two key headwinds in 2022 – (1) higher nominal interest rates, (2) a potentially stronger dollar.
The negative effect from the above two drivers may be offset by other supporting factors – (1) high, persistent inflation keeping real interest rates low/stable, (2) market volatility linked to Omicron, geopolitics high persistent inflation and equities pullbacks, (3) strong global gold demand from jewellery, technology and central banks.
