Gold’s appeal rises as global economy wobbles, but expect volatility 

THE price of gold is expected to trend upwards next year, in spite of rising interest rates that would typically send investors towards higher-yielding investments. Market watchers said global risks could create more demand for the precious metal.

Gold prices are down about 1.4 per cent year to date, closing at US$1,800.20 on Dec 16. But they have fallen 11.8 per cent from their peak of more than US$2,000 per ounce in early March.

State Street Global Advisors’ Asia-Pacific gold strategist Robin Tsui noted that 2022 has been “somewhat volatile” for the commodity. The Russia-Ukraine war in the first quarter of the year brought about robust gold prices, but sentiment tapered in the second and third quarters due to rising inflation and higher real yields in the United States.