Price of Gold Predictions by the Experts
The global pandemic has changed the way people look at life. Five years back, we could not have imagined that a pandemic will affect the world economy in such a terrible way. The pandemic has impacted almost all industries and all spheres of life. Now many investors are taking experts’ opinions before investing in gold. You are here means you want to know about the price of gold predictions by the experts. In this article, we will answer your queries. We will cover all the possible aspects that you can go through before investing.
WHAT ARE THE PREDICTIONS BY THE EXPERTS?
Many experts believe that the market is going to maintain its bullishness in the years to come. Some industry experts predict that the gold price will vary from $3,000 to $5,000 per ounce within the next five to ten years.
You might get contradictory predictions due to the ongoing pandemic. Some believe that the price will increase since people have started recognizing the gold value. They will be interested in investing in gold to make more benefits in the future. It will contribute to the increasing price. Others believe that the unstable economy of the current condition might witness a drop in the price of gold. Let’s cover the predictions of experts in a detailed manner.
LBMA PREDICTION
A survey conducted by the LBMA predicted that the price of gold will be US$ 1,974 in 2021. The London Bullion Market Association revealed its forecast survey report. The survey included thirty-eight analysts. They predicted the gold of $ 1,973.8 per troy ounce this year. The prediction implies a 4.6% gain verse the average price in January this year and an 11.5% increase over the 2020 average price. While forecasting the price, the analysts mentioned a few factors that include fiscal policy and weak dollars. The prediction of this year is influenced by the Covid-19 pandemic, geopolitics uncertainties, and the current economic growth.
MORGAN STANLEY PREDICTION
Morgan Stanley predicted a decline in the gold price in this year and near future. As stated on the Website MeneralPrices.com, the global bank predicted a decline in the gold price. When it comes to 2021, the bank predicts that the average price of gold will be $ 1,835 per troy ounce, and it will be $ 1,745 in 2022. The analysts in the bank also believe that the current pandemic is going to impact the gold price for the coming ten years. The vaccine and driving economic recovery will result in lower monetary and fiscal stimuli. All these are going to influence the price of gold, like other economic sectors.
GOLDMAN SACHS PREDICTION
We can also consider the prediction of the global investment bank, Goldman Sachs. The analysts of this bank have reiterated the target of the previous twelve months of $2,300 for the price of the gold. While predicting the gold price, the analysts have taken many factors into their account that include the inflation resulting from the Covid-19. As stated by the analysts, the inflation in the US might raise three percent temporarily, and that will be more than the Federal Reserve target. The target is two percent. The rising inflation will create speculations and fear among investors. That can result in a growing demand for gold as a protection against inflation. Some other contributing factors are the increasing demand for gold in some emerging markets such as China and India. Even if the US investors will not show interest, the gold will catch the attention of other parts of the world.
BANK OF AMERICA PREDICTION
The bank of America has predicted that the gold price will rise to $ 3,000 per ounce. The bank predicted a gold price of $3000 for the coming eighteen months. As stated by the analysts, the interest rates in the US and the interest rates in the world might stay very low due to the current economic condition caused by the pandemic. The condition will not improve within a couple of years. Like the previous predictions, the analysts have taken many things into their considerations. They focused on the deficits and balance sheet of the central bank and government spending to forecast the gold price. Even if the strong United States Dollar and the less demand for jewelry in some parts of the world will impact the price, the investors will find the gold worth the investment. In the end, the price will be more, as revealed by the analysts.
COMMONWEALTH BANK OF AUSTRALIA ANALYST PREDICTION
The Commonwealth Bank of Australia predicted that the price of gold will be $2,000 in the next couple of months. The mining and the energy commodities analyst of the Commonwealth Bank of Australia, Vivek Dhar, told CNBC is that the current financial condition shows that the gold price will cross the $2,000 mark in the next few months. Dhar further added, the key question is how much it will increase after a few months. The price might surge beyond $2,500 per ounce.
GOLD-EAGLE PREDICTIONS
The Gold-Eagle has predicted the gold price after analyzing the market condition. It has predicted the price for over twenty-three years. The analysts of the Gold-Eagle have worked with reliable metal experts of the world before disclosing their predictions. Their assessments are the outcome of extensive research and a variety of methods. They focused on the market fundamentals, expert technical analysis, global political and economic events, and the current market sentiments to predict the price for over twenty-three years. According to the prediction, the gold price will be $1,875 this year, and the price forecast for three years is $2,560.
WRAPPING UP
Now you have the predictions from experts all over the world. You can take them into your account while deciding on an investment. However, these are not 100% accurate. From the above, you might have realized how experts’ opinions vary on the price of gold. When some believe that the price will increase, others give a completely different opinion. Also, it is not easy to predict the price of gold since the world economy and some other geopolitical factors will be key determining factors.
Even if the price of gold seems to be volatile, it is going to attract global investors. Gold will continue to become a profitable investment option in the years to come.