Gold prices constantly fluctuate with several economic, social, environmental, and political factors. The prices also rely on the opinions of experts and predictions by analysts.
Do you want to know what some of these experts think about gold price prediction and how a gold dealer like GoldStackers can save you from losses? Look at this post for more information.
Why Is The Gold Market Unpredictable?
As you move forward, it is hard to predict what will happen with gold prices. Many factors impact its worth.
A heavy selling volume could drive down gold prices, but at the same time, an increase in demand could have the opposite effect. Experts have made a few predictions about this yellow metal.
Prediction by the Experts
Prices are expected to increase, according to analysts. Many of the world’s most prestigious investment firms and banks are forecasting a return of gold’s value this year and a resumption of the rising trend next year.
Citibank analysts have raised their short-term gold goals to around $2,100 per oz, with target levels over the following 6-12 months likely to exceed $2300 per oz. The key reasons driving future price rises, according to Citibank, are:
- Unprecedented ETF inflows
- A weaker US dollar
- And negative real returns
Why Is The Price Of Gold And Silver Projected To Rise?
The global economy is not in great shape, with China’s GDP dropping. Russia has imposed sanctions on Ukraine, which could push up oil prices and set off a chain reaction that would lead to inflation worldwide. Investors are already beginning to get out of stocks and other risky assets because they see more risk than reward at these lower interest rates and with higher market volatility.
The Australia and New Zealand Banking Group’s gold predictions are comparable. According to the experts, the drop in pricing since August 7 is just a short-term fix before it rebounds to about $2300 after this year. Furthermore, they are still expecting an increase in physical gold demand.
2021 Gold Price Prediction
Gold could climb to over $2,000 per ounce in 2021, per the prediction. The following factors will aid this:
- The precious metal rate will be supported at a high level by increased investment consumption and a gradual rebound in customer demands in China and India.
- In the face of rising prices and negative interest rates, treasury bonds will no longer serve as defensive investments since they will no longer produce revenue.
- Intense fiscal and monetary stimulation will lead to a rise in the inflation rate and a depreciation of the US dollar.
Current Gold Prices
The price of gold increased by 17% during the first half of 2020, reaching $2073 per oz by August. An ounce of gold has fallen to $1,844 since then, despite reports of a coronavirus vaccination.
No one can forget the epidemic. Despite this, the precious metal’s output this year was 16-30%. Many 2020 predictions anticipated that special metal prices would rise to $1600-1700 per ounce in the case of increasing economic and geopolitical instability.
What can you do to ensure that you make money in gold without spending much? You may want to explore dealers like GoldStackers. The dealers are dedicated to customers who want to know more about investing in gold and other precious metals. They offer an exclusive line of products designed for those investors with needs, wants and goals.