NEW DELHI: According to Chirag Mehta, Senior Fund Manager-Alternative Investments at Quantum Mutual Fund, demand for gold is projected to exceed pre-Covid-19 pandemic levels in 2022, owing to more savings, improved mobility, and stable pricing levels.

In 2021, pent-up demand for gold began to emerge. "Even as the Fed becomes more hawkish by the day, and Covid-19 is most certainly behind us," Mehta wrote in a study, "demand for the yellow metal is being bolstered by increased inflation, market volatility, US-Russian tensions over Ukraine, and the collapse in Bitcoin."

In January, SPDR Gold Shares, the largest gold-backed ETF, saw its largest daily net inflow of USD 1.63 billion since its inception in 2004. The fact that investors are interested in the yellow safe-haven metal is evident.

"It's evident that central banks are confronted with difficult decisions in the post-pandemic era, and how they handle this will decide gold's trajectory this year. While the current era of US monetary policy will be difficult for the metal, inflation and other concerns such as those mentioned above will keep it relevant." Rising crude oil prices, which are placing more pressure on the Indian rupee, are a good factor for gold prices in India. India is a big crude oil importer.

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