Goldman Sachs raised its forecast for gold prices during 2022, as prices are likely to stabilize near the levels of $2,500 by the end of this year, after a decline of 4% by the end of 2021.
Their experts attributed these expectations based on the fears of a possible recession that may dominate the world in the coming period, due to the monetary policies pursued by global central banks and raising interest rates at a strong pace. Where central banks are trying to control the high inflation, which reached record levels in some countries.
Now, gold prices are between the strong inflation and the rise in demand for it as a hedge against inflation. And between potential recession fears and increased demand for the yellow metal as a haven.
These expectations come at a time when gold prices declined significantly during today's trading, to return to levels of 1820 dollars per ounce. Global markets are awaiting consumer spending data tomorrow in the US, which is the Fed's preferred indicator for measuring inflation.