After its latest meeting that ended on Wednesday, the US Federal Reserve (US Fed) reiterated its resolve to tackle inflation, which it views as the key problem confronting the US economy. While the tone was hawkish, the measures were not aggressive, per se. Experts say investors must maintain an allocation to gold to safeguard themselves against possible global economic slowdown and volatility in the equity markets in 2022.
Hawkish on inflation
The US Fed will focus on tackling inflation via rate hikes—three or four this year, according to market expectations. These are already reflected in gold’s price.
On the balance