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Analysts at the investment banking firm Société Générale S.A (SCGLY (OTC:SCGLY)) expect gold prices to trade at around $1,900 per ounce by the second quarter of 2022 because they do not anticipate interest rate hikes before then despite the Fed’s hawkish stance. In addition, inflation has accelerated at its fastest pace since June 1982, with the Consumer Price Index (CPI) rising 6.8% year-over-year for November, which could make precious metals a better store of value than the greenback.
Hence, we think it may be reasonable now to invest in the gold and silver ETFs of SPDR Gold Shares (NYSE:GLD), VanEck Vectors Gold Miners ETF (NYSE:GDX), iShares Silver Trust (NYSE:SLV), and Global X Silver Miners ETF (SIL) as a hedge against the rising inflation.
