Published: 2022.07.20. Gold: is it possible to rise to $2,000 by the end of 2022?

Gold: is it possible to rise to $2,000 by the end of 2022? - Preview

“Since the beginning of the year, the US dollar has risen in price by 12%. Nearly half of that growth was recorded last month. Such large fluctuations are rare, but when they do occur, commodity prices usually suffer. The reason is that most commodities are priced in US dollars,” said John LaForge, head of commodities at Wells Fargo, recently.
This loss of purchasing power could have a negative impact on commodity demand and prices, he said. Given the strength of the US dollar over the past month, it's not surprising that prices for most commodities have fallen, especially gold, LaForge said. However, no further significant growth is expected for the dollar, which is now near its peak, he said.
In order for the price of gold to rise again, he says, it has yet to develop its own momentum. The gold price forecast remains at $2,050 per ounce. Given the possible start of a recession in the US, this is still achievable.
However, the price target will be reassessed if there is no corresponding move in the near future: “Gold needs to rise by about 17% to reach our target of $2050 per troy ounce by the end of 2022. For now, our target for the end of 2022 remains unchanged, as 17% growth is quite achievable. With a recession looming and gold being relatively low compared to most other assets, investors may start buying it. However, we understand that time is running out and therefore we are revisiting our goals,” said LaForge.