Gold Price Forecast 2023
Gold Price Forecast 2023: Read about short-term as well as long-term Gold Price Predictions. Also, check the signals from the technical indicators.
The Gold Price Prediction for the next 12 months is $2050.
Gold Rate Today (Spot)
Gold Performance Analysis
- Last 5 Days: +2.9%
- Last 1 Month: +9.4%
- Last 6 Months: +22.6%
- Last 12 Months: +1.9%
Gold Price Forecast for the next 12 month
| Gold Price Forecast (Next 12 months) | $2025 |
| Commerzbank | $1950 |
| MKS | $2300 |
| Bank of America | $2000 |
| ING | $1850 |
Gold (XAU) Price Forecast: Factors Affecting Gold Price
Gold Price is affected by multiple factors. Some of the important factors affecting Gold prices are:
Policies of Government: The policies of the Government particularly the policies on interest rates, and momentary stimulus have a greater impact on the Gold price.
Inflation: Gold is often seen as a safe haven asset during times of economic uncertainty, as it tends to hold its value even when other investments, such as stocks or currencies, are declining. Therefore, concerns about inflation or economic instability can lead to an increase in demand for gold and higher prices.
Interest rates: When the interest rates are low, gold can be more attractive to investors as an alternative investment, and prices can increase. Conversely, when interest rates rise, gold can become less attractive, and prices can decline.
Supply and demand: The price of gold is influenced by its supply and demand. More demand and less supply mean higher Gold prices while the converse is also true.
Currency exchange rates: Gold is typically traded in US dollars. If the value of the US dollar increases relative to other currencies, the price of gold can decline, and vice versa.
Gold Price Forecast Today: Technical Analysis
Gold price recently broke above the crucial $1985 resistance and now the Gold price is well-placed to rise above $2000 once again. Gold is currently on an interesting momentum. Recently Gold prices fell below $1950 in anticipation of the US Fed continuing the rate hike. After the rate hike Gold price was expected to fall as after the rate hike, the dollar becomes stronger and then mass selloff of Gold has been noticed in past.
However, this time, even after the rate hike and the dollar becoming strong, Gold did not lose its momentum. Rather Gold is trading higher and it is once again consolidating to break above $2000.
Analysing Gold on two different timeframe charts (4-hour and daily)
On the 4-hour timeframe chart, Gold is technically highly bullish. The buyers’ concentration has increased but Gold is not overbought.
The price is well above the 50-day and the 200-day Moving averages. The 50-day MA is around $1950 and the 200-day MA is $1870. Gold is on the uptrend and the previous critical resistance of $1985 is now the support for Gold. The new resistance for Gold is above $2000.
The RSI for Gold is 64.32. It is above the 14-day MA and there is enough room for it to rise before entering the overbought territory. The RSI is the confirmation of the bullish momentum.
On the daily chart, Gold is throwing a bullish outlook. The momentum indicator for Gold is deep within the bullish zone.
On the MACD chart, the MACD line and the signal line are both on the uptrend. The MACD line above the signal line. The volume bars are on the rise within the bullish axis. It is a buy signal.
Overall Gold is bullish.
Read: Alphabet (GOOG) Stock Forecast 2023
Is Gold a Good Investment?
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?
- Expansion of Federal Reserve’s balance sheet during the Covid crisis, 2020-21
- Rise in Inflation, Second half of 2021
- The Ukraine-Russia Crisis in 2022
What has pushed the Gold price lower?
- Federal Reserve’s slowing down of balance sheet expansion, 2021
- The Ukraine Crisis not disrupting the Global economies as much as expected
- The Fed’s increase in interest rates
- The fall in US consumer inflation
Why is Gold Price Surging Despite Dollar becoming Stronger?
Gold is turning out to be one of the best bets for financial investments. The price has been surging and now Gold is comfortably placed to break above $2000. The latest surge in the Gold price can be attributed to two following reasons:
- The ongoing global economic uncertainty due to the banking system collapse in US and Europe, the mainstream financial institution is losing the trust of the investors and the investors are now finding Gold a safer investment option. Investors now have started to view Gold as a reliable store of value in times of crisis.
- Another factor that made Gold one of the most preferred investments has been the action of central banks around the world. During COVID, banks around the world in order to combat the economic fallout emerging out of the COVID-19 pandemic printed the currencies in abundance. This created a lot of liquidity in the financial system and has led to rising inflation around the world. With inflation rising, the fiat currencies have lost their value. As a result, investors have found Gold to be the best bet to preserve their investments.
How did the New US CPI Data Affect Gold Prices?
The US Bureau of Labor Statistics released the latest CPI data for the month of January 2023. For the month of January, the inflation rate was 6.4% which was marginally lower than December’s data which was 6.5%. However, the CPI was higher than the expectation which was 6.2%.
After the release of the CPI data, the Gold price surged initially but with the odds for more rate hikes increasing, the price started to fall. The Gold price reached the level of $1850 which is the lowest price since January 2023.
Gold price is under extreme pressure and the price is expected to fall further.
The buying pressure for gold had already softened over the past couple of weeks after surprisingly strong US jobs data. The gold price has been volatile the last few days and has been undergoing a correction.
Gold Price Forecast 2023: Will the Gold Price Fall Further?
The Gold market is witnessing increased selling pressure. This comes after the improved labor market report. In the past 1 year, the US Labour Market witnessed a huge decline in jobs which indirectly led to the dollar becoming weak. A weaker dollar helped the Gold price surge.
As reported, despite the surge in the gold price, the gold market was always at the risk of a pullback with the improving momentum in the U.S. labor market.
How does this Factor Affect the Gold Price? The improving Labor Market data gives US Federal Reserve more opportunity to raise the rate for a longer period in order to keep inflation in check. An increase in the interest rate directly strengthens the dollar and in turn, the Gold becomes weaker.
Recently the US Labor Department published its employed data for the first month of 2023. The payrolls rose by 517,000 last month and the unemployment rate was stronger than expected, dropping to 3.4%, beating market consensus calls of 3.6% in January. The better-than-expected employment data led to increased selling pressure and thus the Gold price fell.
Gold Price Prediction: FAQs
Will the Gold rate decrease in the coming days?
Gold is unlikely to decrease in the coming days as uncertainty remains high in the economy. However, Gold could move lower if CPI inflation falls below 6%.
Will the Gold rate increase in the coming days?
Gold may increase a little before US CPI numbers are released. Gold will move lower if US inflation falls below 6%
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.
Gold Price Predictions for the next 5 years
- Gold Price Prediction 2023 is $1884
- Gold Price Prediction 2024 is $2069
- Gold Prediction 2025 is $2272
- XAUUSD Prediction 2026 is $2494
- XAUUSD Prediction 2027 is $2739
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.