The value of gold saw an impressive rise of 13% by the second quarter of 2022, reaching $1,799 per troy ounce compared to the same time frame the previous year. Despite reaching its peak at $1,891 per troy ounce by the end of 2021, the prices slightly declined, defying predictions. The U.S.'s favorable macroeconomic indicators became a hindrance, making traditional investment options more appealing to investors.
However, the price of the precious metal started to pick up again as the dollar weakened by the end of the first quarter. The April dip was due to a prolonged outflow of gold from exchange-traded funds, which lasted for 11 consecutive weeks from March to April. Yet, the price exceeded $1,800 in May. In the short term, the price of gold will be boosted by the Central Bank of China's decision to increase import quotas, leading to the purchase of up to 150 tons by Chinese banks.
As the global economy continues to recover, especially in developing countries such as China, mining and demand for gold are expected to increase in 2022. India, previously a significant contributor to the demand for gold, saw a significant rise in imports to 321 tons in the first quarter of 2022 compared to 124 tons in the same period the previous year. Orama Estates LLC's analysts predict the average cost of gold to be in the range of $1,880 - $1,950 per troy ounce in 2022-2023.
Orama Estates is proud to offer tailored investment plans for precious metals to both new and existing clients. Contact us for more information on the current rates and available options.
95 Christopher Columbus Drive, 16th Floor, Suite 400,
Jersey City, NJ 07302