Forecast Gold Price Next 10 Years – 5 Essential Factors that Affect the Gold Price

Are you considering investing in gold this year? It sounds like a great investment that can give you a satisfying return after ten years. Well, you might try to forecast the gold price next 10 years but it is quite difficult to do. You can read here and there to find out the expert prediction of gold next ten years but once again you have to remember that it is still a prediction. Some essential factors will affect the price of gold in the future and those factors might not be able to be predicted now. Here they are.

1. Demand for Gold

The very first factor that will affect the value of gold is the consumption demand. When we are talking about the demand for gold, it cannot be separated from the tradition and culture. In a certain culture, the demand for gold can be high because of tradition. The demand for this precious metal can be associated with beauty as well as financial protection after all. In some cultures, people might love traditional investment greatly and this can be the reason why the demand for gold will be quite high.

2. Volatility Protection

The price of gold will also be affected by the protection against the volatility. It is a pretty common reason for people buying or investing in gold because they want to protect their current wealth from uncertainty and volatility. Many of them do not bother to forecast gold prices for the next 10 years because the main reason why they choose gold investment is that it means they can have a physical asset. Gold is seen as a safe haven. When other asset’s values are getting less and less, gold is the physical asset that people want to buy. You might also feel the same about this.

3. Inflation

Gold and inflation are related. You need to pay attention to the inflation status before buying gold for your investment. You might want to keep your money in gold form when the currency value goes down due to rising inflation. Yes, gold can be used as a tool to help them survive during high inflation over a longer period. This is the moment when the gold prices will be pushed higher and higher.

4. Interest Rates

Do you think that there is no relationship between gold and interest rates? Well, you need to open your mind more about this. Some industry experts said that you can find a negative relationship between both under a normal circumstance. The rising yield becomes the indication of strong economic expectations that can lead to the rising of inflation and gold. When the interest rates rise, the demand for gold might not be high so the price of gold will remain flat.

5. Future Demand for Gold

You can predict what will happen in the future. The demand for gold in the world might be quite high but the supply cannot fulfill the demand. Less of gold supply can affect the gold rates change. Hopefully, the forecast gold price next 10 years can be true.