Gold Prices Surge in 2022 but Face Risks of Pullback on Tighter Fed Policy and Fading Safe Haven Demand
• Gold prices surged 16.5% since early 2022 but may have peaked as markets adjust to extended tight Fed policy • Capital Economics foresees gold prices falling back to $2,100/oz by year-end • Safe haven demand from geopolitical uncertainty is unsustainable long-term • Physical demand in China has been a key price driver but expected to fade • As Chinese equities recover, traditional gold price drivers will take over