Loading prices...

Register/Sign in
ScrapMonster
Sell Your Junk CarGet an instant quote for your car on ScrapMonster.com
Gold September 23, 2022 06:20:42 PM

WGC Explains Why Gold Has Not Performed Better Despite High Inflation

Paul Ploumis
ScrapMonster Author
The gold’s performance during the year amidst headwinds demonstrate its global appeal among investors.

WGC Explains Why Gold Has Not Performed Better Despite High Inflation

SEATTLE (Scrap Monster): The World Gold Council (WGC) highlighted why gold has not performed better in 2022, despite high inflation.

According to Juan Carlos Artigas, Global Head of research, WGC, gold’s performance during the year was badly impacted by rising rates and a strong dollar, despite support from geopolitical tensions and inflation. The headwinds for gold may begin to subside, while the supportive factors may likely remain, thus boosting gold’s demand as a long-term investment hedge, he added.

ALSO READ:

WGC: Gold Prices Dragged Down by Strong Dollar, High Yields

WGC Posted Robust Gold Demand by World Central Banks

Majority of investors are of the view that gold could have performed way better, considering the multi-decade high inflation rates prevailing across the world. WGC noted that gold has been a top performer so far in 2022 among various asset classes. However, it had to contend with much higher opportunity costs, both from rising interest rates and the strongest dollar in nearly decades.

The gold’s performance during the year amidst headwinds demonstrate its global appeal among investors.

The gold trade body noted that it is cautiously optimistic about gold, looking forward. The rate hikes are expected to slow down. The increase in recessionary and geopolitical risks will force investors to shift to high quality liquid assets such as gold to minimize portfolio risks, WGC noted.

×

Quick Search

Advanced Search