Interest rate hikes will blunt gold’s appeal

On downtrend: Gold has fallen from record highs of above US$2,000 (RM8,382) an ounce during the investment frenzy in 2020 to around US$1,800 (RM7,543) and most analysts expect prices to trend lower. — Reuters

AFTER a strong start to the year, gold prices will drift lower in 2022 and 2023 as central banks raise interest rates, lifting bond yields and making non-yielding bullion less attractive, a Reuters poll showed.

Gold is traditionally seen as a safe place to invest and typically does well during times of low or zero interest rates.