JP Morgan retains bearish bias for the prices for gold and silver during its latest forecast, projecting an average price of $1,630 per ounce for gold and $20.48 for silver in 2022.
“Expect rebasing higher in long end us nominal yields to weigh on gold over medium-term,” said the US bank in the recent analysis.
On the same line were comments from Kitco that quotes analysts tracking the Commodity Futures Trading Commission (CFTC) data to mention, “Hawkish comments from Federal Reserve Chair Jerome Powell continue to drive hedge funds away from gold and silver.”
“The latest data shows that sentiment in gold is at its lowest point since late-October as funds liquidate their bullish bets,” said Kitco News.
Market implications
Although precious metal bears are bracing for more gains into 2022, this week’s US Federal Reserve (Fed) monetary policy meeting will be the key to follow for clearer directions.
Read: Fed Preview: Dollar hinges on 2022 rate hike dots, guide to trading the grand finale of 2021
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