Gold Demand Is Optimistic This Year

John Reade, chief market strategist at the World Gold Council, said that tensions in Ukraine were a major factor supporting gold prices rising to a new three-month high, as investors sought safe-haven assets, but also emphasized that if the conflict can be resolved quickly, gold prices may will fall back. In addition to short-term fluctuations, John Reade pointed out that the association's research shows that gold, as one of the asset allocations of the investment portfolio, can effectively reduce the risk of the overall investment portfolio, and the appropriate gold investment proportion is between 4%-10%. Looking forward to 2022, John Reade believes that gold will still be a good investment target, even if the US Federal Reserve is about to enter a cycle of raising interest rates, mainly because the expectation of raising interest rates has been reflected in the price of gold to a considerable extent. John Reade said that some large investment banks are expected to raise interest rates up to seven times this year by the Federal Reserve. Although this will be quite aggressive, the gold market has already digested such information in advance; from this point of view, if The current gold market only expects 1-2 interest rate hikes, but it will be more worrying.