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Gold Price Forecast for Spring 2024: Expert Predictions

May 16, 2024

This spring, financial experts present several scenarios for the trajectory of gold prices:

 Stability in Gold Prices Expected

Several analysts predict that gold prices will remain stable in the short term. “Over the next couple of months, I expect gold prices to remain flat,” states Steve Azoury, owner of Azoury Financial.

This stability is linked to the Federal Reserve’s decision to maintain interest rates at a 23-year high for the foreseeable future. Although Fed rates don’t directly dictate gold prices, they typically have an inverse relationship, where gold demand increases as interest rates decline.

However, the Federal Reserve has hinted at possible rate cuts shortly, which could alter market dynamics, according to industry experts.

“Gold prices are expected to remain robust over the next year and could even see an uptick in the following years,” predicts Alex Ebkarian, co-founder of Allegiance Gold.

 Potential Rise in Gold Prices

Echoing Ebkarian’s sentiments, the consensus among most experts is that gold prices are poised for an upward trend.

“Predicting the immediate future of gold prices is challenging, but we are confident of an increase throughout this year,” suggests Peter Boockvar, Chief Investment Officer at Bleakley Financial Group in Fairfield, N.J. Expected Federal Reserve rate cuts and potential weakening of the dollar are anticipated to support this rise.

Geopolitical tensions also play a significant role, traditionally boosting investments in safe-haven assets like gold, ensuring sustained demand.

A JPMorgan report anticipates that gold prices will continue to escalate quarterly, peaking towards the latter half of 2025. Presently, gold is trading above $2,250 per ounce, surpassing earlier forecasts for the year.

“Despite predictions that gold prices would diminish after reaching $2,000 per ounce, the opposite has occurred. Over the past six months, gold has increased in value by nearly 17%,” reports Nick Fulton, managing partner at USA Pawn and chairman of the Mississippi Pawnbrokers Association.

 Investment Caution Advised

While the outlook for gold prices is positive, and it seems to be an opportune time for investment, experts advise caution. Financial professionals generally recommend allocating no more than 10% of your investment portfolio to gold. This strategy helps diversify investments and shields against downturns in other asset classes.

“The wisdom of not putting all your eggs in one basket is especially pertinent today,” advises Fulton, emphasizing the importance of a balanced investment approach.

 Gold Price Forecast

 Gold Price Projections for 2025 and Beyond

Anticipating a banking crisis, several banks, including Goldman Sachs, Citi, ANZ, and Commerzbank, have revised their gold price forecasts upwards. Initially, Goldman Sachs anticipated a stable price of around $1,970 per ounce from 2023 to 2026 but has now increased their 12-month projection to $2,050 per ounce.

Bloomberg Terminal suggests a significant range for gold in 2025, estimating between $1,709.47 and $2,727.94.

Bloomberg Intelligence’s Mike McGlone expects both gold and its “digital counterpart,” bitcoin, to appreciate by 2025. He points to gold’s 84% increase since the Fed began tightening in 2015, projecting a potential rise to $7,000 by 2025.

Long-term expectations for gold prices remain optimistic, despite inherent challenges in forecasting. Influences such as inflation, the U.S. dollar’s strength, central bank rates, and monetary supply all contribute to gold’s valuation. Despite these complexities, projections extend to scenarios where gold could reach $10,000 per ounce by 2050, potentially replacing the U.S. dollar and confronting increasing demand as global supplies diminish.

 Projections Leading Up to 2030 and 2040

By 2030, some analysts believe gold could hit $7,000 per ounce. Economist Charlie Morris regards gold as a dominant asset of the 21st century, highlighting its significance despite yielding no returns. Investment analyst Jim Puplava anticipates a bull market influenced by demographic trends and globalization.

Looking towards 2040, David Harper estimates that gold could reach $6,800 per ounce, assuming a 7.2% annual return. This projection is based on historical performance analysis, emphasizing a long-term growth trend since the 1970s.

 Gold Outlook up to 2050

Long-term forecasts generally posit a rising trajectory for gold prices, driven by escalating global demand. Recent studies suggest that by 2050, essential metals, including gold, might become scarce. However, perspectives like those of Robert Kiyosaki in his book “Fake” argue that gold, as “God’s money,” will likely become a predominant currency, potentially alongside bitcoin, challenging traditional fiat currencies.