February 28, 2023

Gold Price Predictions for the Next 5 Years

Gold Price Predictions for the Next 5 Years - Matador

After gold prices reached a high of over $2,000 an ounce in March 2022, we've seen a steady decline due to central banks' monetary policy tightening and interest rate hikes—however, there are signs that the trend may be reversing.

Will the price of gold go up again? We can look at gold price predictions for the next five years to get an idea.

Gold price trends in the last 5 years

  • The years leading up to 2020: Gold prices were relatively stable, with fluctuations within a relatively narrow range. However, with the onset of the COVID-19 pandemic in early 2020, gold prices began to rise dramatically, driven in part by uncertainty in the markets and a desire for safe-haven. Gold prices reached a record high of around $2,070 per ounce before dropping back down to around $1,800 by the end of the year.
  • 2021: Prices remained relatively steady in the first half of 2021 before beginning to rise again in the second half of the year, as concerns around inflation and supply chain issues drove purchasers back to the precious metal.
  • 2022: Gold prices reached $2,050 per ounce in March 2022 before inflation and monetary policy tightening caused the price of gold to fall to $1,817 by the end of June 2022. The price of gold continued to decrease in the following quarter as central banks increased interest rates aggressively to control the high inflation rates. By the end of 2022, the price of gold started to gain momentum, rising by more than 17% between November 2022 and January 2023.
  • 2023: On January 13, 2023, the price of gold passed $1,900, which was the highest it had been since April 2022.

Gold price predictions for the next 5 years

From research analysts:

Fitch Solutions anticipated in its December 2022 forecast that the average gold price for 2023 would be around $1,850 per ounce. This is a slight increase from its earlier projection of $1,800.

ANZ Research analysts offered a more optimistic forecast in January 2023, predicting gold prices would stand at $1,920 in March 2024.

WalletInvestor, an algorithm-based price forecasting service, predicts that the value of gold will increase to $2,153 by February 2028.

From financial institutions:

The National Bank of Canada forecast gold prices at $1,825 for 2023 and 2024, and increased its long-term gold prices to $1,600 per ounce starting in 2027, stating the best gold companies to continue to be those with "near-term production growth that are well funded, and companies with a strong balance sheet and a good catalyst calendar."

From banks:

JP Morgan’s head of base and precious metals strategy, Greg Shearer, expressed optimism for gold prices in 2023:

“Even with a bullish baseline gold and silver forecast, we think risk is skewed to the upside in 2023. A harder-than-expected economic landing in the US would not only attract additional safe-haven buying, but the rally could become supercharged by more dramatic decreases in yields if the Fed more rapidly unwinds tighter fiscal policy," Shearer said.

Factors influencing gold price predictions

Several factors could influence the spot price of gold in the next five years, including:

Supply and demand:

Gold is affected by how much of it is available and how much people want to buy. Many people buy gold because they believe it's a safe bet during uncertain times or when inflation is high.

The US dollar:

Gold is priced in US dollars, so when the dollar goes up in value, gold usually goes down, because it becomes more expensive to buy in other currencies. On the other hand, when the dollar is falling in value, gold usually goes up, because it becomes cheaper for people in other countries to buy it.

Global economic and political conditions, as well as market speculation, can also affect the price of gold.

However you choose to buy gold, it's crucial to remember that gold price fluctuations can occur due to various factors. As an buyer, it's important to keep up-to-date with market trends and news to make informed buying decisions.

Learn more about how Matador can help you buy, sell, and store physical gold instantly from your smartphone.

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