Inflation in the US is now at its highest level since December 1981, and, according to the expert, this should play in favor of the yellow precious metal.
A senior analyst at Gabelli Funds said in an interview, "In order for gold to start moving, we have to make the average American fear that inflation is around the corner." He went on to say, “If the market and the average American understand that the US Federal Reserve is not controlling inflation, gold will do very well against this backdrop.”
In addition, Mancini expects gold and other precious metals to benefit when the US Federal Reserve raises interest rates at the end of the current 2022: “Economic activity will decrease, which will be a driving factor for the growth of precious metals.”
The interview also discussed the advantage of owning gold in the current environment compared to bitcoin or other cryptocurrencies. Here is what Mancini had to say about this: “What makes gold unique, what makes it different from others, and what has made it the world's currency over the past 4,000 years, is that it is unique. No one can make another gold."
Gold continues to benefit from fears of a military conflict in Ukraine. Investors remain concerned about the potential economic impact of the crisis in this country, which in turn provides some support for the price of gold, which is viewed by investors as a "safe haven".