Gold poised for swings

THE World Gold Council highlights in its latest outlook for gold that the precious metal may well face similar dynamics to those of last year as competing forces both support and curtail its performance.

The gold price will likely react to tightened monetary policy this year, as a result of global banks trying to control inflation. Yet, while rate hikes can create headwinds for gold, history shows their effect may be limited, the council reports.

Simultaneously, elevated inflation and market pullbacks can likely sustain demand for gold as a hedge.

This while long-term support for gold will come from continued central bank demand and jewellery markets. —