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MNI MARKET ANALYSIS: Gold, a Hedge Against DM Policy Normalization?

MNI STATE OF PLAY: BOK Holds Rates; Flags Higher Growth, Prices
MNI STATE OF PLAY: BOK Holds Rates; Flags Higher Growth, Prices

Executive summary

  • Last year, the strong momentum in global equities have left gold prices vulnerable; the precious metal was down 3.6% in 2021 following a 25.1% appreciation in 2020.
  • However, investors’ interest on gold could start to surge this year as global uncertainty rises due to DM tapering/normalization.
  • Gold is defined as a zero-beta asset, which tends to even appreciate in value in periods of rising uncertainty and price volatility.
  • Key resistance to watch on the topside stands at $1,811; a break above that level would announce the start of a potential ‘bullish trend’.

Link to full publication:

Gold upside 2022 -NEW .pdf

Source: Bloomberg/MNI

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