At the start of 2022, gold proved to be a better investment compared to bitcoin. Unlike digital gold, the precious metal has remained steady despite high market volatility. As a result, gold outpaced the number one cryptocurrency in terms of gains. Last year was not so favorable for gold as it was fluctuating rapidly. It was one of the worst-performing assets in the market along with the euro and US Treasury bonds. Everything changed in early 2022 when gold regained its status as a safe haven asset and showed a higher return compared to bitcoin. The metal displayed strong resilience even after 10-year Treasury yields and the US dollar index advanced. Analysts admit that there are still downside risks for gold in the second half of 2022. But in the near future, the asset has bright prospects ahead. “There are significant dislocations buried beneath headline inflation, interest rates and currency moves, raising the appeal of holding the yellow metal in a portfolio and supporting our $1,925/oz average gold price forecast for 2022,” analysts at Bank of America said.
