will gold hit $5000

Will Gold Hit $5000? 5 Factors that Influence the Gold Price in the Future

Will gold hit $5000? Gold is a type of asset that will not lose its demands in any situation. Even during the crisis and pandemic just like now, it is still relatively stable. Yes, it is although the value was once falling down when the Covid-19 pandemic happens. Throughout the year 2020, the gold has been strengthened by more than 13%. It is quite close to the highest level in 8 years. So, it is possible that the value will hit $5,000? All the possibilities are always there. However, there are some factors that influence the gold price in the future. If you are interested in investing your money in this form, you must know them.

5 Factors that Will Make Gold Hit $5000 Fast

1.  The Global Crisis

Whether the price increases or decreases, it is often caused by the global crisis. People tend to not believe in the government and the global market in the situation. Some important events in the world may cause global crisis and it influences the gold price also. Well, the Covid 19 pandemic that we are experiencing currently is one of them.

2. Inflation

Another important factor that influences the gold price is inflation, known also as the currency deflation. Some investors may think to buy gold when the value of money has decreased. Undeniably, investors need other types of investment when money cannot be “trusted”.

3. The Value of USD

It is not exaggerating to say that the USA is very strong and powerful in terms of the world’s economy. At least, it is seen by how influential its currency is. Yes, the condition or value of the USD not only influences, but also controls other things including the price of the gold. Besides, the USD is indeed the primary currency to use in international trades. This way, when the USD is stronger, gold tends to be weaker and vice versa.

4. Interest Rates

Generally, gold indeed doesn’t have any relationship with interest rates, including obligation or the bank account. However, the fluctuation of the gold price often influences the interest rate also. For example, when the gold price is increased, the interest rate tends to be decreased. On the other hand, when the interest rate is increased, the gold price is decreased.

5. Industry and Jewelry

Gold is not only valuable for investment. More than that, it is also important for other sectors including jewelry and industry. Well, even common people know gold more as jewelry anyway. As information, more than half of gold demands in the market are related to jewelry, commonly coming from countries like the USA, China, India, and some more. For industry, the use of gold refers to its application to electronic and medical devices. Sure, the demands of gold in those sectors also influence the price in the market.

Will Gold Reach 5000 an Ounce?

There are so many predictions of the gold value in the future. However, those predictions may not be accurate because the price of gold is closely related to some factors mentioned above. Will gold hit $5000 or not, it is still possible for sure.