What Will Happen To Gold Prices In The Future?

What Will Happen To Gold Prices In The Future?

It is widespread belief and you might be familiar with people saying gold in the past, present, and future will remain to be the best investment alternative because it is multipurpose always in demand with a millennia-long history of price appreciation and will always appreciate.

But you might also be familiar with that person or organizations who are taking cash from you in exchange for gold without regrets. If it was certain to gain the value due to the fact stated in the above paragraph, what might be the reason for it? Doesn’t this suggest something might be going on in the short-term with gold, maybe some problems?

After reading the above paragraphs, you can get an idea about why and how the price of gold is changing regularly. This is because there are two types of thinking in the market that are acting as per their thought about the asset which are moving the price lower or higher. This is not only one factor for change in the price of gold there are many other factors like trading this as a trade instrument, investing in it as a hedging instrument, speculation, and so on.

With the world suffering from a lot of uncertainty about coronavirus, US-China tension, and other geopolitical aspects, investors always perceive the gold as a safe haven. This might change how we used to think about gold or create an alternative history, it is yet to be discovered but for now let’s analyze the future price of gold. I will try to make this post short and sweet and give you the levels to look for in case you want yourself to get involved in gold.

The bubble in the financial market recently and the actions of the developed nations are suggesting a situation similar to the great depression and financial crisis of 2008. This could be more devastating than 2008 but not as much as a great recession but the time will show it. The gold price will surge if there is a recession as investors shift towards gold as a haven. 

Under Normal circumstances gold and US Dollar share inverse relation. When the US dollar declines other currencies rise and there is a demand for commodity along with gold, this is because international gold is denominated in the US dollar, another reason is when the US dollar loses value investors look for alternative investment sources to hold value which gold is acting from generations.

The Price of gold at the time of writing and publishing this article was around $1720 per ounce, $55.36 per gram, $55360 per kg, $5536000 per 100 KG which gives a value of $71,968,000,000 as the price of 1300 ton gold which Bank Of England was accused of flooding in the market in an attempt to suppress prices to keep prices low during a time of high demand for physical gold that might happen due to financial crisis from around July 2013 as per an article published here.

Let’s not divert from the topic of what will be the price of gold in the future? It is not easy things to answer as many variables are to be considered to predict the price as the future itself has many meanings. I would try to break the future into 3-time frames as

Short Term:

In the short term as per the Technical & Macro Analysis the gold can be hovering around 1400(near breakout levels) to 1796 area before determination of the next move. This analysis will be invalidated if gold goes below the 1380 level. This short term means until the end of 2020. The movement of the market cannot be predicted with 100% accuracy and there are a lot of things that need to be considered before starting to trade or invest it is advisable to consult with your investment advisor.

Medium Term:

In the medium-term perspective as per Technical and Macro Analysis gold might approach its all-time high around 2000 but it will take around 2 to 3 years before it breaks its all-time high. This analysis will also get invalidated if the gold comes down to its breakout levels. The medium-term in this scenario is defined until the end of 2021.

Long Term:

In the long term perspective as per Technical and Macro Analysis gold might approach new highs above its all-time highs around 2000 to new highs around 3000 to 5000 but it is an analysis with status quo market movement of the asset. This analysis will also get invalidated if the gold comes down to its breakout levels. The long-term in this scenario is defined beyond 2021 up to 2025.

This might help you better plan for your future and also gain some insight into your trading and investment opportunities but before you blindly go out and open a position refer here and here in order to start your journey in the new changing scenario. As a bonus to the viewer, I would like to provide a CSV file of the historical price of gold since 1970 which if you require please message me after liking my Facebook page and if this post was helpful and provided you any value, please share this post.

This is not financial advice and I don’t hold any position in gold at the time of writing this post. Also keep in mind that I am neither permabull nor permabear in this asset class. Invest wisely and do your research before you invest. Thank You.