Gold price forecasts 2025 Many banks, including Goldman Sachs, Citi, ANZ, and Commerzbank, raised their initial forecasts for gold, as they were faced with the possibility of a banking crisis. Goldman Sachs analysts initially expected the price of gold to remain stable in the period between 2023 and 2026, at around $1,970 an ounce. They hiked their 12-month gold forecasts to $2,050 an ounce. Gold’s price forecast for 2025 at the Bloomberg Terminal is between $1,709.47 and $2,727.94. Bloomberg Intelligence Strategist Mike McGlone predicts that both gold and its “digital version,” bitcoin, will appreciate by 2025. The price of gold has shown divergence strength, being up 84% since 2015, when the Fed just started its tightening, and could be heading for $7,000 by 2025. Gold price forecasts beyond 2025 It is generally believed by commodity analysts that the price of gold will keep rising in the long term. However, it is difficult to accurately forecast the price of gold or the price of any commodity for the next two decades, as the price depends on several different factors. These include the inflation rate, the strength of the US dollar, central bank interest rates, and the increase in the money supply. Most major banks and financial data providers, such as Bloomberg, provide only short-term price predictions. An additional reason is that commodity markets can be highly volatile, and small changes in supply or demand factors, along with external events like geopolitical tensions or extreme weather events, can lead to unexpected price swings. This volatility can challenge the accuracy of predictions. Despite the complexity of long-term price predictions, there are different scenarios and long-term price forecasts for gold from 2030-50. Those range from gold reaching $10,000 per ounce, replacing the US dollar alongside Bitcoin, and even the scenario of the world running out of gold by 2050, faced with growing demand. Gold price forecasts 2030 The $7,000 an-ounce scenario seems to persist in gold forecasts for 2030. In the Rational Case for $7,000 Gold by 2030, economist Charlie Morris predicts the $7,000 price milestone. Morris describes gold as the leading major asset class in the 21st century, which is an extraordinary achievement given that gold doesn’t pay a yield. Investment analyst Jim Puplava predicts a significant bull market by 2030, citing demographics and globalisation as the primary reasons for the price increase. At the turn of the century, when gold was below $300, Puplava correctly predicted a 10-year bull run in precious metals. Gold price forecasts for 2040 David Harper predicted that the price of gold could reach $6,800 an ounce by 2040, estimating a rate of return of 7.2% per year. This scenario, according to Harper, describes a reasonable return. Harper’s methodology is based on historical data analysis, calculating that if you bought gold in 1976 at a low of $103 an ounce and held it without interruptions to the peak of almost $1,900 in 2011 (in August and September 2011), you earned a rate of return of 8.5%. Gold price forecasts until 2050 Commodity analysts who make long-term forecasts believe that the price of gold will generally keep rising in the next few decades as the demand for the precious metal increases. In a research paper recently published in the journal Trends in Ecology and Evolution, Josep Peñuelas, a research professor at the Center for Ecological Research and Forestry Applications of the Autonomous University of Barcelona and at the Higher Council for Scientific Research (CREAF-CSIC), warned that by 2050, the world could run out of essential metals, including gold. Other theories about the future of precious metals, however, are more optimistic. Gold has been here since eternity, according to Robert Kiyosaki, and being “God’s money,” it is likely to become the main form of currency in the future. In his book “Fake,” Kiyosaki examines the future of money and claims that ultimately gold alongside bitcoin could erode fiat currencies. Conclusion Short-term price predictions for gold suggest an increase in its value and demand in the next years, at least until 2030, showing the price could gradually rise to around $7,000 an ounce. Courtesy:: Publicly available Materials from various Web sources Compiled by :: Sridhar Rajasekar S -Shree Investments