Will The Price Of Gold Go Up? Analysts' Target Prices
Traders Union research predicts that the price of gold will go up in the long-term, reaching $2954.74 by the end of 2032. Other financial institutions such as Goldman Sachs and BMO Capital Markets predict a higher gold market rate from $2400 to $2500 in 2025.
Like with any financial asset, trying to predict whether the price of gold will go up or down is challenging. Gold, or XAUUSD, is widely considered a safe-haven asset and a hedge against inflation, so it performs well during times of economic uncertainty. Over the past few years, the price of gold has more than doubled, as the world saw record levels of inflation and rising geopolitical instability. Investing in gold is a good option, so long as it continues on its current track.
Though we can not accurately predict the future to determine how to invest in gold, we can certainly try to make a well-informed guess and decide if investment in gold is profitable. In this article, Traders Union will explore whether gold will keep going up, look at price of gold forecasts, and break down what the price of gold is based on.
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What is gold target 2025?
Traders Union predicts that the price of gold will be around $2109.34 by the end of the year. However, the largest banking institutions put gold at anywhere between $1800 to $2500 in 2025.
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Is gold bullish or bearish in long term?
Over longer periods, gold is predicted to perform well, though short-term predictions for the next few years are not as optimistic.
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What will gold be worth in 2030?
Research conducted by Traders Union predicts a 10-year high for gold in 2030, with the price expected to hit $2954.74 in the middle of the year.
Will the price of gold keep going up?
When deciding whether a gold investment is right for you, it is important to consider the long-term outlook. Gold tends to be a highly volatile asset, often seeing significant price movements in the short term.
For example, if we look at price movements of gold for the week from the 6th to the 11th of December on a 5-minute candlestick chart, there is a significant range, from highs of $2,039.8900 on December 7th to lows of $1991.4100 on December 11th. That’s a 2.37% decrease in value, with a general downward trend.
However, if we look at the gold market rate in 2024 on a 1-week candle chart, we see a general upward trend with lows of $1774.0600 in January to highs of $2,148.7800 in November. This indicates that overall, the price of gold is increasing. With gold investment, it is more beneficial for traders to look at the long-term price growth of the asset than to focus on intraday price movements. Maybe, you are also interested in information about Maybe, you are also interested in information about in which month should you buy gold.
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Is investing in gold a good option?
Gold is widely considered a safe-haven asset, with investors flocking to it in times of economic difficulty and using it as a hedge against inflation. Gold also has distinctive behavioral qualities that make it a useful financial asset for diversifying an investment portfolio. On top of that, gold is a tangible asset – which some investors prefer – and has a long track record with a finite supply yet constant demand.
However, it’s important to bear in mind that although gold’s primary advantage is diversification, its financial properties do not align with everybody’s financial goals. Warren Buffet, the CEO of Berkshire Hathaway and one of the richest people in the world with a net worth of $118 billion, is very vocal about his dislike for gold investment. He states that gold has no value and lacks usefulness, saying "It doesn't do anything but sit there and look at you." If the 7th richest person in the world isn’t buying gold, it might not be for you.
Price of gold forecasts
Countless financial institutions, banks, and investment firms make regular predictions for what the gold price will be in the future. Their predictions help investors to determine whether the price of gold will go up. Here are the predictions regarding the price of gold for 2025 from major banks:
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Goldman Sachs: $2,500 per ounce by 2025
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Morgan Stanley: $2,000 per ounce by 2025
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Barclays: $2,100 per ounce by 2025
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JPMorgan Chase: $2,200 per ounce by 2025
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UBS: $2,000 per ounce by 2025
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Deutsche Bank: $2,300 per ounce by 2025
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Citigroup: $1,800 per ounce by 2025
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BMO Capital Markets: $2,400 per ounce by 2025
Here at Traders Union, our experts work around the clock to track the performance of gold (XAU) and make predictions on gold’s price in the future. Whether you want to find out what is the price of gold today, why the price of gold is falling, or what is the price of gold based on, we have you covered: Gold (XAU) price prediction 2024, 2025, 2030. Whether you want to find out what is the price of gold today, what the price of gold will be in 2024, why the price of gold is falling, or what is the price of gold based on, we have you covered: Gold (XAU) price prediction 2024, 2025, 2030.
Factors that Could Drive Gold Prices Up
Experts in gold investment consider as much information as possible when trying to produce a comprehensive prediction about what the price of gold is doing. The price of gold is influenced by countless factors, including, but not limited to; inflation levels, interest rates, geopolitical events, currency movements, and central bank policies. As there are so many potential factors influencing gold, it’s impossible to predict its future with guaranteed accuracy. However, some almost certain aspects suggest the price of gold will go up:
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Continued inflation: Predictions vary from source to source, but generally inflation is expected to remain high in the coming years, though could slow down. In most cases, the price of gold does rise with inflation, so gold could continue to increase in value in the coming years.
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Global economic uncertainty: The global economy is facing several challenges, including rising interest rates and slowed growth. This could lead to more investors turning to gold as a safe-haven asset, as they have during the previous few years of economic uncertainty.
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Geopolitical instability: The world is becoming increasingly unstable, with geopolitical challenges such as the war in Ukraine and rising tensions in the Middle East. When Russia invaded Ukraine, one bittersweet outcome was a 10% rally in gold prices. Similarly, the price of gold bounced back from a 7-month low and increased 9% following the onset of the Israel-Hamas war. Unfortunately, increased geopolitical instability has a positive effect on how the price of gold is determined.
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Central bank purchases: Central banks could buy more gold to diversify their reserves. The third quarter of 2024 saw banks collectively buying 337t of gold – the second-highest third quarter since records began. Gold buying by central banks was up 14% compared to the previous year-to-date. This trend could continue, meaning it’s possible the price of gold will go up.
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Increased demand for jewelry: The demand for jewelry is likely to grow in the coming years, as the global jewelry market is expected to grow at a compound rate of 4.6% per year from 2024 to 2030. So long as this growth continues, it’s probable that the price of gold will go up.
Factors that Could Drive Gold Prices Down
As mentioned above, there are multiple influential factors in how the price of gold is determined. When the price of gold decreases, it’s almost always due to the wider economic environment. Let’s look at some potential reasons for the price of gold to go down:
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Declining inflation: Some analysts predict that inflation could decline in the coming years. Inflation slowed down in November 2024, and some predict that it will return to normal levels by 2025. As investors often treat gold as an inflation hedge, lowered inflation could make the price of gold go down.
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Strong economic growth: Lowered inflation usually fuels economic growth. Strong economic growth in the next few years could lead to investors becoming more optimistic about the future, which could in turn lead to a decrease in the price of gold.
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Reduced geopolitical instability: Though a decrease in geopolitical instability would be beneficial to most citizens of the world, it would probably be a thorn in gold investors’ side. If the future sees increased geopolitical stability, it’s likely the price of gold will go down.
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Central bank sales: If central banks were to sell some of their gold reserves to raise money, the value of gold would most probably decrease as there would be increased gold in circulation. However, according to the World Economic Forum, central banks have been increasingly buying gold since 2010, so a sudden switch to selling is unlikely any time soon.
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Decreased demand for jewelry: In 2022, Forbes predicted a steep drop for the jewelry market after a sharp increase post-pandemic. However, this drop never arrived. It is possible, but not likely, that demand for jewelry could decline in the coming years. A decreased demand for jewelry would likely result in the price of gold going down.
Summary
Trying to predict the price of gold is a tricky endeavor. The future has always been uncertain, but is seemingly more so in 2024, with geopolitical tensions intensifying and the global economy experiencing turbulent waves. Since gold is positioned as a safe-haven asset in the face of economic uncertainty, future instability could see the price of gold going up. Yet there is no way to know what the future holds, and any number of economic conditions could make the price of gold go down, from declining inflation to strong economic growth.
Across the board, banking institutions and financial organizations predict that the price of gold will increase, painting a positive future for gold. Knowing when to invest in gold is the difficult part, so it’s important to do your research and closely track gold prices. Nobody knows if the price of gold will crash, so take all predictions with a grain of salt and consider whether gold aligns with your financial goals and investment strategy.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Investor
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
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3
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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4
Diversification
Diversification is an investment strategy that involves spreading investments across different asset classes, industries, and geographic regions to reduce overall risk.
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5
Forex Trading
Forex trading, short for foreign exchange trading, is the practice of buying and selling currencies in the global foreign exchange market with the aim of profiting from fluctuations in exchange rates. Traders speculate on whether one currency will rise or fall in value relative to another currency and make trading decisions accordingly.
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Team that worked on the article
Jason Law is a freelance writer and journalist and a Traders Union website contributor. While his main areas of expertise are currently finance and investing, he’s also a generalist writer covering news, current events, and travel.
Jason’s experience includes being an editor for South24 News and writing for the Vietnam Times newspaper. He is also an avid investor and an active stock and cryptocurrency trader with several years of experience.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Tobi Opeyemi Amure is an editor and expert writer with over 7 years of experience. In 2023, Tobi joined the Traders Union team as an editor and fact checker, making sure to deliver trustworthy and reliable content. The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options.
Tobi Opeyemi Amure motto: The journey of a thousand miles begins with a single step.