Gold Price Forecast 2023-2025: Will Gold rate decrease in Coming days?
Gold Price Forecast 2023: Read about short-term as well as long-term Gold Price Predictions. Also, check Will Gold rate decrease in coming days? Read on
The Gold Price Prediction for the next 12 months is $1970.
Forecast Gold Price Next 10 Years: In the next 10 years, Gold is predicted to be valued above $4500.
Gold Rate Today (Spot)
Will Gold rate decrease in the Coming days?
Our analysis considers 4 main factors DXY, US 10-year Treasury Yield, Gold Demand, and Technicals in predicting if the Gold rate will decrease in the coming days.
In the short run, the Gold rate is likely to operate in a narrow range and will not decrease dramatically in the coming days as Macros favor Gold but the demand environment is uncertain.
There are two scenarios with respect to Gold demand which will determine whether Gold rates fall or rise in the next 3 months. If Gold Demand rises in both China and India over the next couple of months due to seasonal demand in India and economic recovery in China, Gold prices should move higher. However, if Gold Demand Falls in both China and India due to the current high prices, the Gold rate may decrease going forward.
Read our detailed analysis, predictions, and latest news updates
Gold Buy or Sell, Crowd Poll
Net Buy Rating = Buy% – Sell%
July 1st: +11.8%
- July 31st: +6.6%
- August 31st: +27.0%
- September 1st: +33.8%
- September 20th: +30.5%
- September 21st: +30.6%
Gold Price Prediction: Daily Macro Update
Dollar Index DXY Trend – DXY has been trending higher over the last 30 days. However, the outlook remains neutral.
U.S.10-Year Treasury Yield – US 10Y is trending slightly higher over the last 5 days. However, The Fed’s attitude towards interest rates suggests that Yields are likely to trend lower sometime later this year or early next year.
Overall Macro: Neutral for Gold
Gold Demand – India’s Gold Imports surged 40% in August despite the high price of XAU. Chinese gold prices hit record highs this week, extending a months-long rally as consumers snap up the safe-haven asset to offset a depreciating yuan.
Gold Price Forecast for Next Week
Gold Price Forecast for Next Week: Gold (XAU/USD) will likely trade in the range of $1906 and $1938.
Gold Forecast and Prediction
Gold Price Prediction Today: Gold price is expected to trade within the price range of $1912 and $1935. (September 17th, 2023)
Gold Price Prediction 2023: Gold is predicted to trade between $1812 and $2058 for the remaining months of 2023.
Gold Future Forecasts: The maximum Gold Price Prediction for 2024 is $2332 while in 2025 Gold is expected to reach $2465.
Gold Price Future Prediction India: By 2023 end, the Gold price is predicted to reach 55,492 INR per gram in India while by the end of 2024, the Gold price is predicted to reach 56,740 INR.
Forecast Gold Price Next 10 Years: The analysts have predicted that the Gold price is expected to remain below $2000 in 2023 while in 2024, the Gold price is expected to break above $2000 however, the price is expected to remain below $2500 until 2025. Multiple websites are of the opinion that the Gold price could start trading above $2500 in the year 2026. By the end of 2029, Gold could likely break above $3000. The Gold price is expected to see massive growth once it breaks above $3000. By the end of 2031, Gold could likely start trading above $3500, and by the end of 2033, Gold is expected to be valued above $4500. Therefore the Gold price forecast for the next 10 years is highly bullish.
Gold Price Forecast for the Next 12 Months
|Gold Price Forecast (Next 12 months)||$1970|
Gold Price Technical Analysis
After being rejected just above $1945, the Gold price has been on a downtrend and has fallen below $1930. The selling pressure has been high for the asset.
On the 4-hour timeframe chart, the price of Gold recently approached the brink of dropping below $1,900; however, buyers successfully defended this support level, leading to a surge in Gold’s value. After breaking above $1940, Gold once again encountered resistance just above $1945. Gold has been on the downtrend since then.
The net price of Gold is situated above both its 50-day and 200-day moving averages. Furthermore, the 50-day moving average (MA) holds a position above the 200-day MA. From a technical perspective, this is considered a bullish signal. However, with the price on the downtrend, the 50-day MA is the potential support for the asset. The 50-day MA is currently at approximately $1922, while the 200-day MA stands at $1,919. The $1945 price level is the first level of resistance for the asset.
The Relative Strength Index (RSI) of Gold after entering the overbought zone reversed as the selling pressure increased. As of the time of writing, the RSI stands at 49.9 and it is on the downtrend. The buyers have been outnumbered by the sellers.
Furthermore, on the Moving Average Convergence Divergence (MACD) indicator, the MACD line has crossed below the signal line, and red histogram bars have begun to form on the negative axis. This configuration typically serves as a sell signal.
The Williams Percent Range of the asset suggests that Gold is oversold. The W%R at the time of writing is -83.49. A reversal is expected at this level but considering the current momentum, the WPR of Gold could likely fall further before a reversal happens.
Overall considering the technical indicators, the outlook for gold currently appears to be negative.
Gold Price Predictions for the Next 5 Years
- Gold Price Prediction 2023 is $2207
- Gold Price Prediction 2024 is $2332
- Gold Prediction 2025 is $2465
- XAUUSD Prediction 2030 is $4600
Gold Price Forecast: Latest Gold-Related News
The Shanghai gold market is giving the dollar gold price “more room to rise” as the yen gold price hits a record high. The Shanghai arbitrage is attracting buyers from China and other parts of Asia, which is pushing up the dollar gold price.
China’s central bank, the People’s Bank of China (PBOC), lifted temporary curbs on gold imports. The PBOC had imposed the curbs in August in an effort to defend the renminbi, which was under pressure due to the US Federal Reserve’s aggressive interest rate hikes. The renminbi has recovered since then, and the PBOC has decided to lift the curbs on gold imports.
China’s retail sales and industrial production for the month of August surged and gold recovered sharply as the Fed is expected to pause the policy-tightening spell. The US Dollar comes under pressure after refreshing a six-month high as fears of a global slowdown recede. China’s Retail Sales and Industrial Production were robust in August. US Retail Sales rose sharply in August
For the month of August 2023, the US CPI came at 3.7%, higher than the expectation. The US Dollar climbed marginally as the chances of further interest rate hikes remain intact.
Michael Lee, a former portfolio manager at JPMorgan Asset Management predicts that the price of gold could reach $5,000 in three years as the US economy heads into a recession.
Factors Driving Gold Price
Multiple factors come into play in determining the Gold price. Some of the important factors are:
US Dollar Index
Gold prices and the value of the US Dollar share an inverse relationship. As the US Dollar strengthens, the price of gold tends to decline. The rationale behind this is that a stronger US Dollar makes it more expensive for individuals utilizing other currencies to purchase gold. This arises from the necessity to exchange a greater amount of their currency for US Dollars, in order to procure the same quantity of gold. Consequently, this results in a reduced demand for gold and subsequently, a decrease in its price.
Conversely, when the US Dollar weakens, it becomes more affordable for those employing alternative currencies to acquire gold. This arises from the requirement to exchange a lesser portion of their currency for US Dollars, in order to secure the equivalent quantity of gold. Consequently, this leads to an elevated demand for gold, leading to an increase in its price.
Supply From Gold Mines
The supply of gold from mines plays an important role in shaping the price of gold. A surge in gold mine supply typically leads to a decline in the price of gold. This outcome stems from the heightened availability of gold within the market, consequently exerting downward pressure on prices.
Conversely, a reduction in gold mine supply tends to result in an increase in the price of gold. This phenomenon arises due to the diminished availability of gold within the market, thereby instigating an upward movement in prices.
However, multiple factors influence the Mine Supply. These are:
Cost of Gold Mining: The more expensive it is to mine gold, the less gold will be mined, which will lead to an increase in the price of gold.
New Gold Mines: If new gold mines are discovered, this will increase the gold mine supply and lead to a decrease in the price of gold.
Technological advances: Technological advances can make it easier and cheaper to mine gold, which can lead to an increase in gold mine supply and a decrease in the price of gold.
Government policies: Governments can also affect the gold mine supply by imposing taxes or regulations on mining companies.
Gold Purchase By Central Banks
When central banks purchase gold, they are essentially adding to the demand for gold. This can lead to an increase in the price of gold, as there is now more demand for a limited supply of gold. However, if central banks are purchasing gold for investment purposes, it may not have a significant impact on the price of gold. However, if central banks are purchasing gold to increase their foreign exchange reserves, it is more likely to have a positive impact on the price of gold.
Interest Rate Change
Gold is commonly regarded as a safe-haven asset, denoting its lower volatility compared to other assets like stocks and bonds. As interest rates experience an upward trajectory, investors may sell other assets and buy gold as a way to protect their wealth. This shift can contribute to a rise in the price of gold.
Conversely, when interest rates decrease, the cost of borrowing diminishes. Consequently, this can stimulate heightened investment and foster economic growth. Gold is not as attractive as an investment when interest rates are low. This can lead to a decrease in the price of gold.
Gold Price Forecast Today: Performance Summary
- Last 5 Days: -1.1%
- Last 1 Month: +0.2%
- Last 6 Months: +2.8%
- Last 12 Months: +12.3%
How has the Gold Price changed in the Last 10 Years?
|Year||Average Gold Price (USD per ounce)|
|2023 (as of Sep 1)||$1,939.81|
The price of gold has experienced significant fluctuations over the past decade. It reached its highest point at $1,921.15 per ounce in September 2011 but subsequently declined to a low of $1,049.60 per ounce in December 2015. Since that time, it has been following an upward trajectory, and as of September 1, 2023, it stood at $1,939.81 per ounce.
In the last couple of years, there has been a significant surge in the Gold price. However, the surge has been marked by the extremely volatile nature of the Gold price.
In August 2020, the price of gold breached the $2,000 mark for the first time in history. This remarkable upsurge was primarily attributed to the Coronavirus pandemic and the extensive financial stimulus measures implemented by governments worldwide. These measures injected a substantial amount of cash into the financial markets, consequently prompting a widespread increase in gold purchases globally.
Nevertheless, the price of gold experienced a decline in the latter months of 2020 as the impact of the pandemic began to subside. Multiple pharmaceutical companies announced the discovery of vaccines for the virus, which signaled a turning point in the global situation.
In 2021, the price of gold remained relatively stable, mostly staying below the $1,900 mark. However, in 2022, gold experienced another surge in value, prompted by the outbreak of the Russia-Ukraine conflict. Gold prices once again exceeded $2,000 per ounce, coinciding with a decline in the value of the US Dollar. To address concerns about inflation and stabilize the Dollar, the US Federal Reserve took a significant step in March 2022 by announcing its first interest rate hike. This move subsequently resulted in a strengthening of the Dollar and a corresponding weakening of gold prices.
Once more, in 2023, gold prices experienced a significant upswing, this time in response to a banking crisis that unfolded in the United States. The collapse of multiple US banks triggered a substantial increase in gold purchases, causing the price of gold to surge. Consequently, gold prices have consistently remained above the $1,900 threshold for the past few months.
Will Gold Price Breach $3000 in 2023?
Gold is currently trading at around $1900-$2000. Therefore, in order to reach $3000, Gold price will need to gain over 50% from the current price. The growth seems unlikely and in the last 3 to 4 decades, the maximum that Gold price gained in a year was around 35% that is in 2007.
Additionally, for Gold to rise, the US government will have to lower the interest rate. But in the last 1 year, the US Fed has continuously increased the interest rates in order to keep inflation under control. The recent announcement of more future interest rate hikes by the US Fed will likely keep the Gold price price.
Considering this factor, even the World Bank has predicted the Gold price to be around $1700 by the end of 2023. The analysts of Fitch forecast gold at US$1,600 at the end of 2023. Therefore, considering this factor, Gold is unlikely to break above $3000 in 2023.
Gold Price Prediction 2024 (Analysts Forecast)
World Bank: Considering the global economic growth, commodity prices, exchange rates, and inflation, the World Bank predicts an average gold price of $1,700 per ounce in 2024.
JPMorgan Chase & Co.: JPMorgan Chase predicts the gold price to reach $2,175 per ounce in 2024. JP Morgan is one of the few institutions predicting Gold to break above $2000 in 2024.
International Monetary Fund: The IMF forecasts the average Gold price in 2024 to be around $1774 per ounce.
Goldman Sachs: Goldman Sachs predicts an average gold price of $2,133 per ounce in 2024.
World Gold Council Q2 Report
- Gold demand (excluding OTC) declined by 2% y/y to 921t. With OTC and stock flows, total demand rose by 7% y/y to 1,255t. Central bank buying slowed, with 103t of net purchasing in Q2.
- Jewellery Consumption grew by 3% y/y to 476t, even with high gold prices. Chinese consumption lagged behind expectations.
- Bar and coin investment grew by 6% y/y, driven largely by Turkey. ETFs saw smaller outflows than the previous year, with a net reduction of 21t. OTC investment surged to 335t.
- Electronics-related Gold demand remained stagnant at 70t due to weak consumer electronics demand.
- H1 gold demand dropped by 6%, but central bank buying set an H1 record at 387t.
- Total supply increased by 7% y/y to 1,255t, with mine production reaching an H1 record of 1,781t.
- LBMA gold price averaged US$1,976/oz in Q2, a 6% increase y/y.
- Gold recycling rose by 9% y/y, led by China and India.
Gold Demand Update
India: Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council, noted a marked surge in gold demand post the India International Jewellery Show in his discussion with CNBC-TV18. While plain gold witnessed robust demand, studded jewelry saw comparatively slower growth. The show itself garnered a whopping $8.4 B in orders, emphasizing the continuous high demand for gold in India, especially during the festive season.
China: Chinese gold demand is expected to remain robust from financial investors and the central bank, according to the World Gold Council. However, retail demand is shaky due to the slowing economy. Investment in gold as a safe haven is predicted to stay solid, and the People’s Bank of China added 103 tons in the first half of the year. In contrast, jewelry demand is uncertain, with sales dropping 10% year-on-year by July.
Japan: On August 29, 2023, the retail price of gold in Japan surged to a milestone of 10,000 yen per gram. This record high, announced by Tanaka Kikinzoku Kogyo, Japan’s premier bullion dealer, highlights the increasing demand for gold. The uptick in gold’s value is driven, in part, by its status as a “safe asset,” especially amid concerns about a potential global economic deceleration.
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.
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
Will the Gold rate decrease in the coming days?
There is a greater likelihood of the Gold rate decreasing in the upcoming days. The price of gold is influenced by several factors, namely:
- Supply and demand,
- Geopolitical events,
- Central bank buying.
Considering the current approach of the US government, there is a higher probability of more interest rate hikes in the coming months. A higher interest rate strengthens the US dollar, subsequently leading to a decrease in the demand for Gold. With lower demand, the price tends to decrease. Therefore, it is likely that the Gold price could fall in the coming days.
Will the Gold rate increase in the coming days?
The price of gold has recently exhibited high volatility. Numerous factors influence the gold price, with a crucial factor being the US Consumer Price Index (CPI) and US interest rates. The US Federal Reserve recently announced that inflation in the United States remains high, necessitating an interest rate hike to control it further. This statement directly led to the strengthening of the US dollar. A robust US dollar implies that borrowing money becomes more expensive. As a result, economies worldwide are beginning to experience a decline in economic activity. This, in turn, leads to a reduced demand for gold. Consequently, the likelihood of the gold rate increasing in the upcoming days is lower.
What is the prediction for the Gold price?
By the end of 2023, the Gold price is predicted to be slightly above $2200. Furthermore, even by the end of 2024, there are higher chances of the Gold price remaining below $2500.
Is it a Good time to invest in Gold?
Whether or not it is a good time to invest in gold depends on your circumstances and investment goals. However, it must be remembered that gold has a long history of being used as a store of value. Furthermore, over the years, the price of gold has surged manifold. Therefore, investing in gold has been a favorable option.
Does Gold go up when Stocks go up?
Gold has generally been a good investment option and has served as a haven during periods of higher volatility in the stock market. As a result, the price of gold typically does not move in tandem with the stock market.
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.