A Surprise of the Year Forecast: Gold to Rise 20 Percent

Veteran Wall Street strategist Byron Wein is forecasting a 20 percent jump in the price of gold for 2022, one of his ten surprises of the year. Wein, Vice Chairman of Blackstone’s Private Wealth Solutions business and former Chief U.S. Investment Strategist of Morgan Stanley, has been issuing his annual list of surprises for 37 years, making it a longstanding Wall Street tradition. 

His prediction: “The price of gold rallies by 20 percent to a new record high. Despite strong growth in the U.S., investors seek the perceived safety and inflation hedge of gold amidst rising prices and volatility. Gold reclaims its title as a haven for newly minted billionaires, even as cryptocurrencies continue to gain market share.”

Wein defines a “surprise” as an event that the average investor would expect has only a one in three chance of occurring, but which Wein believes is probable. Blackstone’s Chief Investment Strategist of Private Wealth Solutions, Joe Zidle, now partners with Wein in making the forecast of surprises. 

If Wein and Zidle’s forecast proves accurate, gold would rise to a new record high of $2,197 an ounce during 2022.

Also on the list of forecasted surprises for 2022, are predictions that the Standard & Poor’s 500 Index will end flat for the year after suffering a pullback of nearly 20 percent; inflation remains elevated, with the Consumer Price Index rising by 4.5 percent; and the price of oil jumps above $100 a barrel.