Gold Price Forecast: Gold Price Surges but with inflation falling, time to sell?

Gold Price Forecast: Gold Price Surges but with inflation falling, time to sell?

Gold Price Forecast for next 12 months is revised higher to $1756

Gold Price Forecast for Next Week is $1801 to $1735

Gold Rate Today (Spot)

Gold Performance Analysis

Gold has risen above $1800 and is now trading at the same level as at the beginning of the year.

  • Gold 2022 Performance – Last 1 Month: +9.0%, YTD: -0.2%
  • Dow Jones 2022 Performance – Last 1 Month: +7.0%, YTD: -6.0%

Gold rose above $1800 after dovish comments by Fed Chair Powell.

Gold Price Forecast for the next 12 months

  1. Federal Reserve: The Fed seems to be ready for a Pivot sometime next year. This is Good news for Gold and has pushed the price above $1800. +ve for Gold
  2. Inflation: Inflation fell below 8% in October and is likely to fall below 7% in November. -ve for Gold
  3. Ukraine Crisis and Commodity Prices: The Fog is clearing this winter with likely talks between the warring parties and their allies. -ve for Gold

With 2 out of 3 factors negative for Gold, it is unlikely Gold will rise above $1900 or fall below $1700.

The average Gold Price Forecast is $1661

Gold Price Forecast (Next 12 months)$1756
Bank of America$2000
Capital Economics$1650

Gold is viewed by many as an inflation hedge and a must-have in their investment basket. There are some unique properties of Gold as an Investment

  • Gold tends to deliver above-inflation returns
  • Gold tends to underperform equity indices
  • Gold tends to perform well when interest rates are trending lower
  • Gold tends to outperform equity indices when the economy is in a downturn and hence a good way to diversify risk in the portfolio

What has helped the Gold price rise?

  1. Expansion of Federal Reserve’s balance sheet during the Covid crisis, 2020-21
  2. Rise in Inflation, Second half of 2021
  3. The Ukraine-Russia Crisis in 2022

What has pushed the Gold price lower?

  1. Federal Reserve’s slowing down of balance sheet expansion, 2021
  2. The Ukraine Crisis not disrupting the Global economies as much as expected
  3. The Fed’s increase in interest rates
  4. The fall in US consumer inflation

Gold Price Prediction: FAQs

Will the Gold rate decrease in the coming days?

Yes, Gold is likely to decrease rather than increase. However, it is unlikely to crash as Gold may still be a safe haven for countries that are suffering from high inflation on account of a weak currency. Gold will decrease in price but stay above $1600 for now.

Will the Gold rate increase in the coming days?

There is no evidence that the Gold rate will increase in the coming days. DXY is getting stronger, the Ukraine conflict may get worse and both Europe and China are struggling (=Stronger Dollar).

Is it a good time to buy Gold?

Yes, it is a good time to buy SOME Gold. Particularly if you are a resident of a country with high inflation and weakening currency. While Gold may fall as low as $1200 over the next 2 years, it is unlikely to crash in the near future and instead operate in a small range for now.

How low will Gold go?

Using historic patterns, we can predict that Gold could go as low as $1200 in this cycle which may end in 2024-25

Why are Gold Prices Dropping?

Gold prices doubled between 2016 and 2020 even as the Fed increased its balance sheet (with a pause in 2018). Gold prices tend to fall when interest rates rise in response to inflation or fear of inflation. Investors find investing in securities and the dollar to be safer than any other investment. Gold began to unwind after the COVID crisis began to ease and inflation breached 6% in the United States.

World Gold Council WGC 2022 Outlook

Gold Price Predictions for the next 5 years

Gold Price Prediction 2023$1884
Gold Price Prediction 2024$2069
Gold Prediction 2025$2272
XAUUSD Prediction 2026$2494
XAUUSD Prediction 2027$2739

Gold Forecast Today

1. Market’s WisdomPositive
1a. Dollar IndexPositive for Gold
1b.US 10YearPositive for Gold
1c.TechnicalsStrong Buy
2. Crowd’s WisdomPositive
2a. Social Media BuzzHigher
2b. Social Media SentimentHigher

Gold Forecast News and Tweets

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Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Nitesh Singh

Nitesh Singh

Nitesh is primarily focused on political analysis and creates political opinions based on data. He also takes interest in writing Crypto articles mostly related to price predictions.

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