New Delhi: Rising concerns over higher inflation and expectations of high volatility in riskier assets are expected to boost the demand for gold in 2022, brokerage house ICICI Securities said.
Besides, the receding euphoria in cryptocurrencies should benefit the precious yellow metal, a traditional safe haven asset.
“Further, expectations of limited upsides in the dollar index will help gold prices to rise again towards Rs 55,000 in the year 2022,” the brokerage house said.
On Friday, physical gold was priced at Rs 48,083 per 10 gm, according to the India Bullion and Jewellers Association.
Further, rising demand for electric vehicles and lower warehouse stocks for copper will boost its prices in 2022.
The copper prices are seen rallying towards Rs 850 per kg, against Rs 749 currently on the Multi Commodity Exchange of India.
“Further, US President Biden administration’s plan of $1.7 trillion investment into green energy is likely to push prices higher,” it added.
Also, China’s lower carbon emission policy along with easy liquidity from China’s central bank also expected to support its prices.
On the energy space, the brokerage house said that easing travel restrictions will increase the demand for fuel and will support crude oil prices on the lower side.