x
Image Source: Unsplash
Silver price 2022: Here's how silver can outperform gold as it plays catch-up next year
There have been many questions surrounding gold and silver's performance in 2021. But analysts remain optimistic, stating that silver can outperform gold once the bull market kicks off in 2022.
Both silver and gold had an uneventful year – silver last trading down 13.5% year-to-date and gold down 4.8%.
"Silver had no life of its own this year, fluctuating merely in gold's slipstream. On balance, it suffered disproportionately high losses as compared with gold. As a result, the gold/silver ratio has climbed from a good 70 at the beginning of the year to over 80 now," said Commerzbank analyst Daniel Briesemann. Read More
Credit Suisse sees gold price around $1,850 in 2022, but long term around $1,400
The gold market is starting the last trading week of 2021 above $1,800 an ounce, and according to an analyst from Credit Suisse, the precious metal could see further bullish momentum in the new year.
In a recent report, Fahad Tariq, precious metals analyst at the Swiss bank, said that he remains optimistic on gold prices even as the Federal Reserve prepares to raise interest rates in 2022.
However, the bank does not expect gold prices to hold above pre-pandemic levels in the long term.
According To Tariq, Credit Suisse looks for gold prices to average around $1,850 an ounce. Looking to 2023, the bank expects gold prices to fall to $1,600 an ounce and it sees long-term prices hovering around $1,400 an ounce. Read More
Demand for this metal is about to grow by 1,000% - Gianni Kovacevic
The electrification of the economy will rapidly transform the modes of transportation; the need for electric vehicles will bring higher demand for both copper and lithium, the latter of which is used in batteries.
Gianni Kovacevic, director of CopperBank, that the copper price, currently at $4.43 a pound, is going to grow to over $6 a pound, or what he calls the “inflation-adjusted all-time high.”
With the growth of copper, demand comes the growth of lithium in equal if not greater rates. Read More
Platinum Palladium prices to hold steady in 2022; hydrogen economy a bullish unknown
2021 has been a dismal year for the entire precious metals sector, and the disappointment has been acutely felt within platinum group metals (PGMs) as palladium has been the worst performer.
Palladium is looking to end the year down more than 19% as prices trade below $2,000 an ounce. According to analysts, PGMs struggled most of the year as COVID-19 supply issues surrounding microchips significantly curtailed vehicle production.
Looking ahead to 2022, optimism is growing among analysts that these two precious metals can maintain a steady course as the global supply chain continues to recover. Commodity analysts at TD Securities are particularly bullish on PGMs and see the current price as a buying opportunity.
"We look to buy the dips in both platinum and palladium. With industrial demand headwinds mounting and the chip shortage still constraining auto demand, the early months of the year could still provide dips toward $1000/oz and $2000/oz for platinum and palladium, respectively. We feel prices near these levels represent ideal entry points to benefit from a coming outsized recovery in auto demand," the analysts said in a 2022 outlook report. Read More
Gold prices under pressure as U.S. weekly jobless claims drop below 200K
The gold market is struggling to hold on to $1,800 an ounce as the U.S. labor market continues to improve as fewer than 200,000 workers applied for first-time unemployment benefits.
Thursday, the U.S. Labor Department said that weekly jobless claims fell by 8,000 to 198,000, down from the previous week's revised estimate of 205,000 claims.
The latest labor market data slightly beat expectations. According to consensus forecasts, economists were expecting to see jobless claims hold steady at around 200,000
The gold market is taking the latest labor market data in stride as it faces ongoing selling pressure. Spot gold futures last traded at $1,799.80 an ounce, down 0.28% on the day. Read More
Palladium/Platinum/Silver: 2021 dogs are 2022 thoroughbreds
At the bottom of the 2021 performance sheet, Palladium aims to wrap up the year down 17%. Not far behind, Silver ended down 12% and Platinum down 10%. Manipulation, you say? Maybe, but it is more of a supply chain issue that will turn these three dogs into thoroughbreds once resolved in the first or second quarter of 2022. Platinum and Palladium are easy to identify where once the auto industry comes back online, the demand should quickly outstrip supply.
Silver prices met two identifiable headwinds, supply chain issues and hedging from mining operations. Remember, a mine is a business, and with rising input costs and questionable covid uncertainty, selling on the forward markets made perfect sense to lock in profitability. Covid related mining closures in 2020 led to massive supply-side production declines out of South America. That supply-side disruption leaves us to believe that Silver will face another price squeeze once demand comes back in the form of Industrial demand. Read More
J.P.Morgan sees gold price unable to withstand the Fed; falling to pre-pandemic levels in 2022
The gold market will not be able to withstand the Federal Reserve's plan to tighten its monetary policy in 2022, according to commodity analysts at J.P. Morgan Global Research.
In its recently published 2022 outlook report, the bank expects gold prices to fall to pre-pandemic levels by the end of next year.
"An unwinding in ultra-accommodative central bank policy will be most outright bearish for gold and silver over the course of 2022," the analysts said. "From an average of $1,765/oz in Q1, gold prices are set to steadily decline over the course of next year to a Q4 average of $1,520/oz."
The outlook comes as the Federal Reserve plans to end its monthly bond purchases by March and looks to raise interest rates three times. Currently, markets are starting to price in the first-rate hike in May. Read More
Gold posting moderate gains as traders buy the dip
Gold and silver prices are firmer in midday U.S. trading Thursday, as bullish traders stepped in to buy the early dip in prices and do some bargain hunting. February gold was last up $8.10 at $1,813.90 and March Comex silver was last up $0.222 at $23.08 an ounce.
Global stock markets were mostly firmer overnight. U.S. stock indexes are slightly higher at midday and are at or near their record highs. Look for lower-volume trading in the last two days of 2021. Risk aversion is not keen late this week, but neither is risk appetite. The U.S. has just recorded its highest number of Covid cases ever as the Omicron variant rages. Still, the marketplace is viewing Covid as “serious but manageable” given the vaccines and other drugs to battle the virus.
Other “back-burner” matters that traders and investors are monitoring include China’s crackdown on democracy in Taiwan and Russia’s troop buildup on the Ukrainian border. Both situations could quickly escalate into major geopolitical crises. Read More
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
