A strong U.S dollar has had a significant impact on the price of gold throughout 2022. As the value of the U.S. dollar increases, commodity prices tend to decrease as most commodities are priced in U.S. dollars.
But, according to Wells Fargo’s real asset strategy head John LaForge, his year-end gold price target remains at $2,050 an ounce. That would be a 17% increase from where prices are now.
“Gold needs its own surge of sorts — about 17% now — to hit our 2022 year-end target of $2,050 per ounce. For now, our year-end 2022 target remains unchanged, as 17% is doable. With recession around the corner, and gold being quite cheap versus most other commodities, investors may begin to buy,” he said.
With the value of the U.S. dollar continuing to increase and the price of gold and silver retreating, many prudent investors are taking advantage of this once-in-a-generation opportunity. Buying gold and silver at these current price levels can be a fantastic opportunity.
