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