The average cost of gold grew by 13% by Q2 2022 reaching $1,799 per tr. ounce compared to the same period last year. At the end of 2021 after peaking at $1,891 per tr. ounce the prices began to drop though just slightly as opposed to the predictions. The favorable macroeconomic indicators of the U.S. economy became negative factors for the dynamics of gold prices. This made traditional financial instruments more attractive for investors.
By the end of Q1 the price of the precious metal started regaining its positions with the general weakening of the dollar. The decline in prices in April was driven by a prolonged outflow of gold from exchange-traded funds, which lasted for 11 consecutive weeks in March-April. However, in May the price of gold exceeded $1,800. In the short term the gold price will be supported by the decision of the Central Bank of China to increase quotas on gold imports. This will lead to the purchase of up to 150 tons of the precious metal by Chinese banks.
In 2022 mining and demand for the metal is expected to grow as the global economy recovers, especially in developing countries, particularly China.
Previously, India formed a significant share of the demand for the precious metal. Although the country remains the main epicenter of the pandemic, according to the results of Q1 2022 India has significantly increased the import of gold to 321 tons compared to 124 tons for the same period last year. Orama Estates LLC analysts predict that in 2022-2023 the average cost of gold will be in the price range of about $1,880 - $1,950 per tr. oz.
Orama Estates is offering custom precious metals investment plans to both new and existing clients. Please contact us to get more details on the current rates and available options.
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