Gold to hit new heights, stagflation is a ‘perfect storm’
Gold has performed better than the stock market so far in 2022 due to the elevated danger of imminent stagflation that has arisen as a direct result of the war between Russia and Ukraine.
The inflation rate has been rising steadily in the United States, and now it has reached a particularly problematic level in the Euro Area as a direct consequence of the increasing prices of energy in that area as a direct result of its dependence on imports from imports Russia.
Goldman Sachs cites increased investor demand for inflation-hedged assets and strong spending in Asia as reasons for raising their forecast price for gold to $2,500 over the next six months. Goldman Sachs brought up this concept of a “perfect storm” for the gold rally.
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