Spot gold at $2,100? Commodities analyst says gold could test new highs this year

Spot gold at $2,100? Commodities analyst says gold could test new highs this year

Could test new highs of $2,100 per ounce this year, according to a resource analyst at fund management company Fat Prophets. weakness and inflation are some factors that are likely to boost the precious metal's prices, David Lennox told CNBC's on Monday. "We do think across the course of 2022, we will see the gold price testing at the all-time record highs, but we can't see it traveling much beyond that once it gets there," he said. Gold prices closed at a record $2,063 in August 2020, according to data provider Eikon. It was trading at about $1,814 per ounce on Wednesday morning in Asia. Lennox said it looks like everything is in place for the U.S. dollar to decline, though it hasn't happened yet. If the greenback weakens, it would be a "boon" for gold, he added. Meanwhile, — up from around 1%, he said. Gold is seen as a hedge against inflation and increases in value as the dollar declines, but "We do believe that high momentum in inflation and that lower U.S. dollar is going to drive the gold price higher in 2022," he added. Geopolitical tensions between major military powers could also drive up gold prices