January 5, 2022 – Three days does not a trend make, but all four precious metals kicked-off the new year with healthy and welcome rallies. The impetus for this positive action rests on gold’s safe haven status in times of uncertainty and the probable decline of the dollar due to sustained inflation, among other influences.
Economically and socially speaking, 2021 was a dysfunctional and divisive year for much of the country. With the prospect of a fresh start in 2022, investors were looking (hoping) for genuine and sustainable improvements in the economy and society at large. What appears to be taking shape is a continuation of 2021’s challenges, which are sure to be exasperated by the mid-term elections.
With a backdrop such as this, many investors will be expecting gold to revisit $2,000 per ounce this year. Consequently, should such positive price action in gold materialize, silver would likely climb back to $30 per ounce.