What is the Prediction of Gold Prices In Future Based on the Condition in the U.S?
Gold is one of the promising investment mediums. The price often increases year by year. Nowadays, people are curious about the gold prices in the future due to uncertain conditions. The information below gives a little bit about what is the prediction of gold prices in the future.
The Latest Gold Price
The rise of the COVID 19 pandemic seems not to affect the gold price significantly. The gold price forecast even increases in 2021. One of the credible institutions explains that gold reaches $1974 per ounce. It means that the cost is rising compared to the previous price. The increase of the price is even significant in which it reaches over 10%.
The Prediction of Gold Prices in the Future
You know that there is a significant increase in the cost of gold in 2021. So, how about the price for the next 5 years? Does the gold cost increase significantly? Most analysts say that gold prices are increased across 2021 and in the future. They explain that the cost may reach $2000. Some of them even say that people may have to spend up to $2300 to buy gold per ounce. The peak cost of gold is around $2680. The gold price reaches its peak price because of the political condition, lockdown crisis, low-interest rates, and unprecedented growth rates in the money supply.
The Gold Price Prediction from Trusted Consultants and Independent Analysts
Most consultants and independent analysts believe that the gold price will be $2000 up to $2300 in 2021. How about the gold price prediction for the next 5 years? Most of them also predict that the gold cost will be higher than $2000. Some of them predict that the cost is around $2.600 up to $2.800 in a few years after 2021. The cost rises significantly in 2023 in which investors will get up to $4000 per ounce.
Factors that Affect the Gold Price in the Future
1. Monetary and Fiscal Stimulus
What is the prediction of gold prices in the future? It depends on several factors. Monetary and fiscal stimulus affect the rise of the gold price in 2021 and the next few years. Monetary stimulus from the Fed will not let up this year. On the other hand, the fiscal stimulus from Congress and the president exploded. The banks get the benefits from the decision in which they are ready to fund people who need money for developing a business or buying something. These two factors become the strongest supporters for the rise of gold cost in 2021 or the next few years.
2. Low-Interest Rates
Investors can predict the gold cost by seeing the relationship between gold and low-interest rates. The lower the interest rates, the higher the gold price. Experts also correlate it by saying the weaker the U.S. dollar, the higher the gold price. It becomes the most consistent predictor of the gold price. You can check the condition of the low-interest rate first before investing your money in gold.
Gold Price Prediction in Future
Due to the ongoing stimulus, the US dollar will be under pressure. It means the gold price increases significantly. It is good to invest in gold after knowing the answer of what is the prediction of gold prices in the future.