2021 was not a year to remember for gold and silver. With gold closing the year down 3.6% and silver down 11.5%, the metals notched record 6- and 7-year declines respectively. But interestingly, 2022 may offer a welcome bullish streak, according to analysts.
An upwards turn for precious metals will hinge upon the pace of pandemic recovery around the globe. Last year Federal Reserve chief Jerome Powell declared that inflation pressures could no longer be dismissed as ‘transitory’, and ongoing price pressures may push more traders towards the yellow metal. To be precise, gold’s higher lows since mid-December could be a sign of increased volatility and momentum to come.
Meanwhile, demand for silver is anticipated to grow as the door is closed on 2021’s supply chain and energy cost issues. In particular, investment in solar power could push silver higher and even help it outperform gold.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
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