Gold price may cross Rs 55k per 10 gm in 2022 on Covid woes, strong dollar

Rising inflation tends to drive gold demand. Gold is perceived as a strong hedge against inflation and decades of data supports this assumption, says an analyst

Gold, which lost its sheen to some extent in the second half of 2021, is likely to regain the glitter in the New Year and cross the Rs 55,000-per-10-grams level amid pandemic woes, inflation worries and stronger US dollar.

After a stellar run up in 2020 when the yellow metal touched a record high of Rs 56,200 on the MCX in August, the prices are near Rs 48,000 per 10 grams now. This is roughly 14 per cent lower from the all-time highs and 4 per cent lesser compared to January 2021 levels.

All said, the current level is still