The world’s top gold producer forecasts higher gold output in 2022, and analysts at Societe Generale recently raised their gold price forecast for the first quarter of 2022. Where do you think gold prices will go in 2022 and even beyond? We’ve rounded up analyses from around the world to give you varied perspectives on 2022 gold prices so you can make the best choices for your precious metals portfolio.
What Could Happen to Gold Prices in 2022?
Newmont, the world’s largest miner of gold, is bullish on the gold market in 2022. So is French investment bank Societe Generale.
Newmont expects gold production in 2022 to reach 6.2 million ounces, up from the 6 million ounces that it expected to produce in 2021, according to the Reuters news service. However, overall demand for gold may still outpace any increase in supply.
Meanwhile, Societe Generale believes the price of gold will average $1,950/oz. in the first quarter of 2022, Reuters says, citing the Federal Reserve’s commitment to support the U.S. economy. By comparison, gold prices during the third quarter of 2021 generally remained between $1,700 and $1,900/oz.
Aside from Societe Generale, other analysts see a promising short-term future for gold amid ongoing uncertainty in the global economy. For instance, Wells Fargo forecasts gold prices rising to $2,000/oz. in 2022, according to Kitco News. And Mike McGlone, senior commodity strategist at Bloomberg Intelligence, told Kitco News that he thinks gold will “steal the show” in 2022 compared with other precious metals.
Fahad Tariq, a precious metals analyst at Swiss bank Credit Suisse, says he remains optimistic about gold prices even as the Federal Reserve prepares to raise interest rates in 2022, according to Kitco News.
Credit Suisse foresees gold prices in 2022 averaging roughly $1,850/oz.
Others, however, have a different view on gold’s near-term prospects. For instance, Dutch bank ABN AMRO forecasts that gold will close out 2022 at $1,500/oz. That accessible price point could represent a buying opportunity for asset holders as they seek to diversify their portfolios, counteract inflation, and find a safe haven from economic uncertainty.
The outlook for gold prices next year “largely depends on central bank policy regarding inflation in the U.S. and other major economies, among other factors,” according to Capital.com.
What Could Happen to the Price of Gold Beyond 2022?
No one can accurately pinpoint what will happen to the price of gold beyond 2022.
“It’s important to keep in mind that financial markets remain extremely volatile, making it difficult to accurately predict what an asset’s price will be in a few hours and even harder to give long-term estimates,” Capital.com notes.
Still, some analysts have made educated guesses about the price of gold beyond 2022.
Ole Hansen, head of commodity strategy at Danish lender Saxo Bank, told Capital.com that he “would not be surprised” if gold trades above $2,300/oz. within the next five years, based on a projected annual growth rate of 5%. (Compare that growth rate to the national average interest rate for savings accounts, which is only 0.06%, according to Bankrate.)
Richard Mills, a mining expert and financial writer, looks to the past to affirm his belief in gold’s future, writing, “Since 1972, gold has gone from $35 to $1,750.” (It even crossed the $2,072/oz. threshold in 2020.) “That’s the power of precious metals. In my opinion, the coming inflation and soaring global debt levels all but guarantee another gold run is on its way.”
LiteFinance expresses more specific optimism about the longer-term future of gold prices. The financial platform expects the price of gold to break the $2,000/oz. mark at the end of August 2023 and stay above $2,000/oz. for the remainder of the year.
“Overall, the price of gold in 2023 will go up, and no significant falls are expected,” LiteFinance predicts.
Request U.S. Money Reserve’s exclusive 2022 Global Gold Forecast for an in-depth look at the future of physical gold.