The forecast for the price of gold for 2025 is largely an extrapolation of the current year's influential factors. Earlier this year, Goldman Sachs indicated that the commodity bull market observed last year is likely to continue throughout the current year and beyond. In fact, the investment bank maintains that the commodity supercycle will last about 10 years. Generally speaking, investors flock to gold as a stable store of value when currencies and other monetary instruments are no longer reliable.
It's important to remember that financial markets are still extremely volatile, making it difficult to predict gold prices over a short period of time and even more difficult to provide longer-term forecasts. As for the data, Friday's non-farm payroll data and US inflation data. Next week's U.S. will affect the price of gold in the new month.
Global economic growth, inflation rates, U.S. Treasury yield, interest rate policies and geopolitical risks affect the price of gold. Predicting the price of gold over the next five years will be a little easier than considering a long-term forecast. Your personal goals and your research will determine if gold is the right investment for you.
Your decision to invest in gold should be based on your risk tolerance, investment objectives, portfolio composition and market experience. A feasible forecast of the price of gold for 2030 is based on the movements of the US dollar due to the existing inverse correlation. The Treasury and the stock markets responded well to this, and investors sold their gold, as the Federal Reserve's promise to deal with inflation was taken seriously. While the stock price is usually correlated with the price of gold, the company's fundamentals also play a role.
The euro, the British pound sterling and the Japanese yen, to a lesser extent, also influence the price of gold. The Federal Reserve's efforts to tighten its monetary policy and deal with rising inflationary pressures are the main driver of gold prices as the market enters a new month. For example, if you think there is a bull market for gold, you can add a little more to your gold stocks. If this happens, even to a small extent, investors will almost certainly flock to gold and push the price of gold to new highs.
Therefore, it is important to consider some gold allocation to take advantage of any possible upward movement.