Page 10 - Bullion World Volume 02 Issue 02 June 2022_Neat

Bullion World | Volume 2 | Issue 02 | June 2022

aggressive super tightening cycle,
for two key reasons: the first is an
expectation that inflation will soon
peak courtesy of higher interest
rates, and the second is that higher
interest rates undermine demand for
gold because gold yields nothing and
costs money to store safely. Gold
is trading in an environment of high
inflation and geopolitical risks, which
is somewhat offset by the Federal
Reserve's aggressive tightening
plan, therefore resulting in a new
pricing floor of $1,800. Investors
are seeking refuge in gold as equity
markets are hit much harder.

In a very exciting new chapter,
ABC Bullion is opening a luxury
Moreover, we are in the process of monetary policy tightening and a retail boutique right in heart of the
developing an ABC app which is higher USD; inflation in the U.S. is Sydney CBD. Our boutique will be
the accumulation of listening to the running at 8.5% annually, which revolutionary, with cutting edge
needs of our clients and providing is its fastest pace since 1981. interior architecture and a specialist
them with the functionality they are These inflation projections already team of experts working to ensure a
desiring. incorporate more than 250 bps of holistic and personalised customer
cumulative tightening by the end of experience. Located in the high-end
Kindly give an update on the next year. retail domain of Martin Place, which
Gold Price outlook. Help us famously has a high frequency of
understand the impact of In light of the Fed's hawkish policy foot traffic, we believe having a street
high inflation on Gold price stance, there have been growing presence in a prominent, illustrious
performance. recessionary concerns, with location while maintaining our Perth,
Despite equities and bonds falling the Central Bank itself slashing Melbourne, and Brisbane offices will
amid spiking volatility, gold fell economic growth forecasts for this increase our visibility as an industry
slightly in April as rates and the US year to 2.8% from previously 4%. As leader in the gold investment market.
dollar shot higher, as well as high the year goes on, the Fed and the We foresee that it will generate
inflation data and fears of a slowing European Central Bank are also very more engagement to the value of
global economy pushing equity likely to keep revising their inflation investing in gold to not only potential
markets down. By mid-April 2022 projections upward and growth and existing investors, but also the
gold rose to one-month highs just estimates downward. Mounting general public.
shy of USD2000.00, as concerns recessionary signals should help to
around the Russia-Ukraine conflict underpin gold's investment thesis as
and rising inflationary pressures investors seek to mitigate portfolio
increased safe-haven bids for the risk, as well as to hedge against
precious metal. inflation.

Gold’s main drivers in 2022 are Any other thing you would like to
recessionary concerns, rising share with our readers?
inflation, and geopolitical uncertainty. Currently, the gold price rally stalled
The main headwinds are aggressive as investors digest the Fed’s more

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