Will it be gold or U.S. dollar at new record highs in 2022? 'I'm bullish on gold,' says NDR strategist

Will Gold or US Dollar Hit Highs in 2022?

Gold last traded at $1,775 an ounce. Silver at $21.98 an ounce.

NEWS SUMMARY: Precious metal prices remained stable Thursday despite a firmer dollar. U.S. stocks dipped as traders took a pause awaiting fresh economic data on Friday.

KITCO--"Gold and the U.S. dollar are well known for their inverse correlation. But will 2022 be the year of gold or the U.S. dollar? Ned Davis Research's (NDR) chief global investment strategist Tim Hayes weighs in.

With the Federal Reserve looking at a more aggressive tapering schedule next year and potentially two rate hikes, the U.S. dollar index has been holding up quite well at the 96 level, which has been weighing on gold.

But will the inflation narrative change the outlook for gold next year?

'The dollar made a high right after the COVID-19 crisis in March. And on the question of which one is more likely to make a new high - gold or the dollar - I'd say gold. I'm currently neutral on the dollar, which sort of implies that it stays in its trading range. But I'm bullish on gold,' Hayes told Kitco News.

Contrary to the U.S. dollar, gold has a solid setup going into next year and could reach new all-time highs after consolidating since its August 2020 record highs, Hayes noted. 'Gold is likely to hit new record highs as long as this environment remains. And that implies that this is about as good as it gets for the U.S. dollar,' he said."