While gold investors wait for the Fed’s interest rate decision, some experts think the precious metal may reach $ 1600 in 2022.

Gold fell to the lowest level since August 2021, below $1,700 an ounce. Gold, which is already experiencing significant fluctuations in 2022, had a near-record rally in March after Russia invaded Ukraine. However, due to the Fed’s tightening monetary policy and the dollar’s appreciation, gold depreciated close to 8 percent.

UBS Group AG’s asset management division also lowered its September gold forecast to $1,600 while lowering its year-end gold forecast to $1,700 from $1,800. Citigroup also warned that $ 1,600 for gold could be seen in 2022.

Gold had lost more than $110 in July due to the possibility of investors increasing interest rates by 100 basis points. While the Fed is expected to increase by 75 basis points for the second time in July, it is not known how the decisions to be taken at the following meetings will affect the economic data and price stability.