XAUUSD/GOLD

[Dr.Masih Rezvani + 29]

XAU/USD

remains strong with the growing uncertainty in the world economy and rapidly expanding money supply. As governments try to cope with financial turbulence, they print more and more fiat money (money that is not backed with material assets). This fuels inflation that eats away government bonds yields. If the yields themselves are lower than the inflation, then you actually lose purchasing power by holding these bonds. In such a situation, investors switch to assets they believe will allow them to preserve their wealth. Gold is precisely one of such assets. 

[Mark Sloan + 9]

On 1/6/2022 at 5:14 PM, Dr.Masih Rezvani said:

XAU/USD

remains strong with the growing uncertainty in the world economy and rapidly expanding money supply. As governments try to cope with financial turbulence, they print more and more fiat money (money that is not backed with material assets). This fuels inflation that eats away government bonds yields. If the yields themselves are lower than the inflation, then you actually lose purchasing power by holding these bonds. In such a situation, investors switch to assets they believe will allow them to preserve their wealth. Gold is precisely one of such assets. 

US dollar weakness and inflation are definitely factors that are going to boost the price of gold in 2022. But oil is the best hedges against inflation, not gold. Oil and metals like copper and lithium. 

[A/Plague + 50]

 Gold ...expect growth in the short term. Deal BUY