What does the future hold for Gold?
Experts have bullish predictions.
by Ivan Martinez | Laguna Beach, CA | 12 August 2023
Firstly, what causes the price of Gold to go up — or down?
Gold price fluctuations are influenced by a variety of factors, and it can be difficult to predict exact future movements. However, there are certain patterns and trends that have historically been observed. Here are some of these common patterns and factors that can influence gold price fluctuations:
- Supply and Demand: Like any commodity, gold prices are influenced by supply and demand dynamics. Increased demand or limited supply can lead to price increases, while decreased demand or higher supply can lead to price decreases.
- Economic Conditions: Economic indicators such as inflation, interest rates, and GDP growth can impact gold prices. During times of economic uncertainty or inflationary pressures, investors may turn to gold as a safe-haven asset, driving up its price.
- Geopolitical Events: Political instability, conflicts, and geopolitical tensions can lead to higher demand for gold as a hedge against uncertainty. This can cause prices to rise.
- Central Bank Policies: Actions taken by central banks, such as changes in interest rates and monetary policy, can influence gold prices. Lower interest rates and loose monetary policy can potentially lead to higher gold prices.
- Currency Strength: The strength of the U.S. dollar has an inverse relationship with gold prices. A weaker dollar often leads to higher gold prices because gold becomes cheaper for holders of other currencies.
- Market Sentiment: Investor sentiment and psychological factors play a role in gold price fluctuations. Fear and uncertainty can drive investors to seek the safety of gold, while periods of optimism may lead to decreased demand.
- Seasonal Trends: There are historical seasonal trends in gold prices, with demand often being stronger during certain times of the year. For example: festive seasons and wedding seasons in countries where gold is culturally significant.
- Technical Analysis: Some traders use technical analysis to identify patterns and trends in price charts to make predictions about future price movements.
- Mining Costs: The cost of gold production can impact prices. If mining becomes more expensive due to factors like rising energy costs, it might affect the supply side.
2024 Predictions for Gold
With so many geopolitical events occurring worldwide, many are wondering what the future holds for Gold — more than usual. Today the Russo-Ukrainian war is still occurring. We are in tumultuous times all around the world geopolitically. Thus, many factors are involved in the gold prices of today. Nevertheless, demand for gold remains high and experts have bullish predictions.
- ABN Amro – $2,000
- AG Thorson for FX Empire – Target of $3,000
- Natixis – $1,920 average
- UBS – $2,250
- BMI – $1,850
- Trading Economics – $2,016
- Commerzbank – $2,050
Bullionbypost.eu outlined an average of existing predictions on the future price of Gold. Here are forecasts from ABN, UBS, Commerzbank, and more . An average of these 7 forecasts is $2,155.14 per ounce. This would mean a new all-time high. Because gold tested the current high of $2,080 in 2023, a new record does seem plausible in 2024.
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