Gold Price Prediction

Used as a means of exchange and trading since ancient times, gold has been viewed as one of the most precious assets and a safe haven for storage. Centuries pass, but its value keeps growing because of its scarcity and immunity to destruction. Today, gold is still one of the most well-established and widespread assets for investments, particularly in the long term. Are you considering adding it to your portfolio? Read this ultimate guide to 24k gold price per ounce prediction: how much it will be tomorrow, in 2024, 2025, and later on.

Table of Contents

Gold Technical Analysis

Gold Price History Chart

Short-Term Gold Price Prediction for 2024

Gold Price Predictions 2025

Gold Price Predictions 2026

Gold Price Forecasts 2030

Gold Price Forecasts for the Next 5 Years

Gold Price Prediction for the Next 10 Years

Gold Exchange Rate Prediction for the Next 20 Years

What Influences Gold’s Price?

Is Gold a Good Investment?

FAQ

Gold Technical Analysis

All things considered, gold’s surge in recent years truly picked up steam in the first few days of May, climbing 26.3% in 7 months to $2,050. That was not far off the closing high, which set record levels in early August 2020 at $2,062. The Federal Open Market Committee (FOMC) of the Federal Reserve last upped the federal funds rate by 25 basis points, which was followed by the most recent gold tick. It shows a typical range of 5.13%.

Due to the extreme leverage involved in this market, speculators typically control the direction of gold prices over the short term. US payrolls fell 1.6% on Friday, May 5 as a result of the seasonal decrease in gold prices for the month. Another significant positive surprise in the monthly US jobs data for April was largely responsible for this.

Within the pink trend, a powerful bullish tendency is emerging. If it does not go below this level, gold will be able to surpass $2,200. Most likely, the asset will follow the trend, and even hit the $2,400 level, unless there is a decline that is significantly stronger than the blue one.

Now that the long-term behavior has been verified, let's look at the short-term behavior – check out the 1W graph. A decline to $1,850 would not only kill the long-term uptrend, but it would also greatly lengthen the recovery period.

This frame also shows a recognizable bullish turn. Within the previously described pink upswing, there is a broken blue downturn. A steeper upward trend (purple) should be able to drive the price over the white trend and up to the $2,250 mark if it continues to rise above the $2,200 threshold.

The price is likely to remain above the top band of the white trend around $2,250. After a brief period of stabilization, it may form a much steeper version of the white trend, rendering the previous one obsolete, and increase quickly above $2,400. The $2,080 level will most likely me retested, and maybe even much lower if the price begins to decline below $2,200.

Gold Price History Chart

The price of gold has fluctuated over the last century, with several noteworthy milestones. Here’s a brief history of gold prices over the last hundred years:

• In 1920, the price of gold was $20.67 USD per ounce. This average rate remained stable until the 1930s, when Franklin D. Roosevelt devalued the USD and raised the cost of the precious metal to $35.
• During World War II, the US government set the price of gold at $35 to fuel its war budget. This rate lasted until the 1970s and stayed around the same level. However, growing inflation and economic uncertainty led to a surge in demand for gold as one of the safest investment options.
• In 1971, President Nixon ended the gold standard, which obviously raised the price. By 1980, the asset hit an all-time high of $850 due to political instability, inflation, and diverse geopolitical events, such as the invasion of the Soviet Union into Afghanistan.
• The 1980s and 1990s were marked by relative stability: the price of gold hovered around $400 for years.
• In 2008, the global financial crisis kickstarted the growth of the gold price: it reached $1,000 thanks to investments flooding into this safe asset.
• From 2011 to 2015, gold prices broke new ceilings. The price reached a new all-time-high of $1,900 in 2011. However, its value declined in 2013, and by 2015, fell to around $1,050. By 2023, gold overcame the $1,900 threshold, and still hovers around it.

Over the previous years, the cost of gold remained relatively stable, and minor fluctuations occurred due to geopolitical events and economic uncertainty.

Short-Term Gold Price Prediction for 2024

Despite a very wide range of predictions, the majority of forecasts in 2024 do indicate a price range comparable to that of 2023. The dollar's strength is mentioned as one of the main reasons. Analysts anticipate that the dollar will hold its ground or gain even more strength in the first half of 2024 before slowing growth causes interest rates to peak or fall. On the contrary, USD weakening will trigger a rise in gold prices in the remaining months of 2024.

It should be noted that most forecasts for 2024 fail to take into account such burning issues as the influence of Russian or Chinese actions on the political scene. These countries might cause a huge impact on the price of gold in either a positive or negative direction.

In 2024, the Federal Reserve, the European Central Bank, and the Bank of England are all expected to ease their monetary policies, which will result in a reduction in the spreads between the Euro, the British pound, and the dollar exchange rate against gold, which is typically thought of as an asset with no interest rates.

In 2024, gold prices will benefit from monetary policy easing by the Fed, ECB, and BoE as the rate differentials between the USD/EUR/GBP and gold diminish.

Strategists suggest that the impact might be less severe than when interest rates were much lower, though, because a sizable spread in these currencies' favor is anticipated to continue.

Here is a gold price forecast for 2024 by WalletInvestor:

Gold Price Predictions 2025

The important factors that have influenced the current year are expected to substantially extrapolate into 2025. Gold’s performance as a risk-on asset will probably be enhanced by a tighter Fed policy and ensuing slowdown in economic growth.

Here are some predictions from different sources:

• According to Wallet Investor, in 2025, the opening price of gold is anticipated to reach $2,179. By the end of 2025, the closing rate will increase to $2,229 from the previous closing price of $2,210 in June 2025.
• The Economy Forecast Agency claims that the cost of gold is expected to hover in the range from $2,200 to $2,500 in 2025. The estimated price over the next five years is $2,600.
• Coin Price Forecast for 2025 says the price will end the year at the level of $2,400. After that, rates will keep climbing significantly.

Gold Price Predictions 2026

2026 is expected to be a calm year for gold with stable but minor growth. Here is WalletInvestor’s price projection:

Gold Price Forecasts 2030

Overall, the gold price prediction for 2030 is positive. Due to the lasting economic instability caused by the looming collapse of the European and American banking systems, investors are starting to lose their faith in traditional financial institutions. So, it’s not surprising that gold is regarded as a bulletproof investment once again. Investors view gold as a reliable store of value during economic downturns.

The actions of central banks have also contributed to gold's status as a number one investment. In order to offset the economic effects of the COVID-19 epidemic, banks all over the world created currency in large quantities. Consequently, the financial sector experienced a serious increase in liquidity, which triggered a rise in inflation rates globally.

The table below demonstrates what gold prices might be in the following years:

Gold Price Forecasts for the Next 5 Years

Inflation rates, central bank policies, and geopolitical tensions are key aspects that define the gold future price predictions made by economists and financial institutions.

The stock markets have been impacted by high volatility since the beginning of 2022. The price of gold was rising steadily a year ago, and the upward tendency has not subsided. The primary issue that will affect XAU/USD in the future is inflation. Americans are witnessing the biggest inflation problem in forty years. Since gold has always been the most efficient anti-inflation tool, prices may go even higher and surpass $2,000.

The price of gold should increase in the upcoming years, but it might well push back beyond $2,000 dollars per ounce. The following events could contribute to it:

• Generous fiscal and monetary stimulation will kickstart growing inflationary expectations and depreciation of USD.
• The precious metals industry may have an influx of funding from investors, and a slow but steady improvement in consumer demand across China and India.
• Since they would stop producing income, government bonds (government debt) won't serve as defensive assets against inflation and negative interest rates.
• Gold will be widely used as a hedge in tense geopolitical circumstances. In this case, the opportunity cost of possessing gold would fall.

Here is a 5-year gold price prediction:

Gold Price Prediction for the Next 10 Years

The gold price prediction chart for the next ten years appears positive, as the general gold forecast still holds true that its value will only increase, especially given that a financial crisis is on the horizon, and we can observe what happened in the ten years that followed 2008.

The 2008 global crisis, in Dohmen Capital Research's opinion, is a suitable recent example. As credit became more restricted, the crisis intensified, a rush to cash in on all assets began, and gold fell by 31%. For bulls who were unaware that a financial crisis causes all assets to fall in value, it was terrible. But at the bottom, it also produced a fantastic purchasing opportunity.

With all these points considered, gold still remains a worthy investment because its value is likely to double in a 10-year perspective, but, of course, it will depend on a number of political and economical factors.

The table below displays a 10-year gold price forecast with minimum and maximum prices:

Gold Exchange Rate Prediction for the Next 20 Years

Foreseeing the price of gold in 2040 is highly speculative and uncertain. A myriad of factors impact the price of gold over all timeframes, and their interplay makes long-term forecasts unreliable.

Forecasts for the next 20 years will depend on global economic conditions: inflation, interest rates, currency fluctuations, and dozens of other factors. When the world gets concerned about inflation or economic instability, investors may seek refuge in gold, which will then rise in price.

Geopolitical tensions, trade disputes, political instability, and major global events can affect investor sentiment and increase the demand for gold as a safe-haven asset. Central banks hold significant gold reserves, and their buying or selling activities can impact the market. Changes in their policies, such as increased gold purchases, can boost prices.

The supply and demand for gold are crucial determinants of its price. Factors such as gold production levels, technological advancements in mining, jewelry demand, and industrial uses can affect the balance between supply and demand.

Investor sentiment, market speculation, and trading activities in gold futures and other financial instruments can also have short-term impact on gold quotations. These factors can be influenced by various psychological and behavioral peculiarities that are difficult to analyze.

What Influences Gold’s Price?

Since gold is one of the oldest assets, its value relies on a large number of factors, which we will discuss below.

Inflation

Inflation is one of the major factors that affect the price of gold – they have a negative correlation. When it rises, the native currency starts losing its value, leading investors to seek crisis-proof assets like gold. The increased demand for gold drives up its price.

Conversely, when inflation is low, the value of currency is stable, which reduces the appeal of gold as an investment and causes its price to decline.

Currency Fluctuations

Currency fluctuations can have a significant impact on gold prices. When a currency weakens, it often pushes the price of gold up, because this precious metal is considered a safe-haven asset, and investors tend to turn to it during times of economic uncertainty.

Also, a weaker dollar makes gold relatively cheaper for foreign buyers, increasing its demand. When a currency strengthens, it can lead to a decrease in gold prices as it becomes relatively more expensive for foreign buyers.

Geopolitically Uncertain Times

Gold is often preferred to other assets for investment during periods of geopolitical instability. When there are tensions or conflicts between nations, investors seek the stability and security of gold, driving up its demand and price. Geopolitical events such as political unrest, trade disputes, or wars can create high uncertainty in financial markets, leading small and large investors to flock towards gold as a hedge against potential economic risks. That means gold prices tend to rise during times of geopolitical turmoil.

Interest Rates

When interest rates are low, the opportunity of holding non-yielding assets like gold decreases. This makes gold a more valuable and safer investment, leading to increased demand and higher prices. As interest rates rise, investors may shift towards yield-bearing assets, reducing the demand and potentially lowering gold prices.

Supply Constraints

Limited supply due to conditions like decreased mining output or disruptions in the supply chain can trigger higher demand and subsequently growing prices. When the supply of gold is limited, it becomes more valuable thanks to scarcity. Investors may anticipate future shortages and increase their demand, causing prices to rise. Vice versa, if the volume of gold increases, it can lead to oversupply and potentially lower prices as the gold market becomes more saturated.

Is Gold a Good Investment?

In the short term, gold may be seen as a favorable investment option for individual investors seeking to hedge against market risks and preserve capital. It is considered a safe and valuable asset during times of economic uncertainty or market volatility.

In the medium term, gold's cost can be impacted by such factors as high inflation, central bank policies, and overall market conditions. Bank actions, such as interest rate rises or reductions and monetary stimulus influence all traded assets. Gold can comprise a part of the portfolio for medium-term wealth preservation and diversification.

In the long term, gold's performance will surely depend on global economic trends, currency fluctuations, and supply/demand dynamics. The major benefit of gold is its unchangingly high value over centuries, and will surely continue to be considered a store of wealth.

Overall, the prediction for 2027 and following years is positive. As economies grow and populations increase, the demand for gold, particularly in emerging global markets, may rise. Furthermore, gold supply is limited, and mining new reserves is becoming more challenging, potentially leading to a long-term positive outlook for gold prices. The precious metal can be seen as a safe investment that allows holders to hedge against currency devaluation and achieve optimal diversification of their portfolios.

FAQ

How much is gold expected to cost in 2030?

By 2030, the price of gold is expected to increase by more than 40%, from $3,186 to $4,515. Gold will begin the year of 2030 at $3,186, rise to $3,377 through the first half of the year, and end the year at $3,418. That’s about +76% from today, to be exact. However, some forecasts are not that optimistic, suggesting that further price increases of gold will not exceed the $3,000 threshold by this time.

What is the gold price prediction for 2040?

There are not many forecasts around to rely on, but the gap between predictions is very huge – from $2,989.02 to $53,525.53. Sinc this is more than 15 years in the future, the cost will still depend on many factors, such as the geopolitical situation, the strength of USD, and cryptocurrencies.

What is the gold price prediction for 2050?

By 2050, we might witness XAU/USD prices at the level of $10,000 and higher, especially if the US economy experiences a massive collapse. However, this is a highly optimistic scenario for the asset, as there are many other global conditions that impact its cost over such a long term.

What is the gold price prediction for 2025?

According to the 2025 XAU/USD forecast, the asset’s cost is expected to stay within the range of $2,170 - $2,250. The most optimistic forecasts claim that the rate will rise to $3,500. However, everthing depends on how financial markets trends will evolve.

Will gold ever lose its value?

Yes, even gold is not immutable to economic changes. It might lose its value in the future due to changes in the global economy, USD positions, shifts in supply and demand dynamics, and tech advancements. However, gold has been a valuable asset for centuries, and is considered a safer choice than many other assets.