Gold Outlook To Q2 2022: Needs To Catch Up With Inflation Reality
Nitesh Shah (Wisdom Tree) | After staging a recovery for most of Q2 2021, drawdowns in June and August 2021 have set the metal back. Based on our modelling framework, gold looks severely under-priced. Red-hot inflation – currently above 5% – should point to a gold price above US$2000/oz, yet we are currently languishing around the $1785/oz handle. As Figure 1 below shows, our model indicates that in July 2021,…