Investment is always a risk versus reward endeavor. Whether you’re diving into real estate, stocks, mutual funds, or whichever other venture, the options are plenty. But perhaps you’ve been thinking about delving into the precious metal market, more precisely, the gold market. Gold has been and still is a go-to measure of monetary value, and that’s why gold price forecast remains an essential enterprise in trying to give a dependable outlook on the value of gold.
Why Is Gold Such an Expensive Commodity?
Gold is a relatively rare metal that is corrosion-resistant with a unique bright yellow appearance that sets it apart from other metals. Its rarity is one major factor that gives it a hefty price tag with the metal only getting rarer as mining becomes more challenging. In fact, at the current mining rates, it is estimated that the earth could run out of new gold in the next 20 years. Rarity aside, investors always viewed gold as a vital portfolio diversification tool, carving out a unique niche for gold’s sustained value.
What Is Gold Price Forecast?
In the same way that other assets such as shares or bonds dip and gain in price, gold also follows a similar trend. A few factors come into play when trying to determine the price of gold, and a change in any one factor could have a significant impact on the price of gold. Gold price forecast aims to evaluate a variety of those factors to try and accurately predict the prices of gold in the coming days, weeks, or months.
How Is the Price of Gold Determined?
The London Bullion Market Association, also known as LBMA, is the main body tasked with setting purity, form and pedigree standards for gold bars. It, therefore, owns the rights to the processes involved in gold trading and, as such, give the benchmark price. The body then adjusts the price in real-time based on the financial evaluations of anonymous actions that run every forty-five seconds.
Gold Prices in the Past Year
As of January 1st, 2019, the price of gold was 1,278.30 US Dollars per Kilogram. Since then, the prices have climbed steadily with a dip happening between late February and late May. Since the beginning of June, however, gold prices increased to an all-year high of 1,526.30 US Dollars per Kilogram on August 23rd, 2019. Minimal variation has been seen since then, with prices remaining well over the 1,400 US Dollar per Kilogram mark.
Gold Price Estimates in the Coming Year
2020 is forecasted as a year of increased fragility in the global economy. Gold prices always benefit from such volatility, meaning that the price of gold is projected to increase in the coming year. Additionally, interest rate cuts by the European Central Bank have lowered the value of several European currencies, thereby making gold an appealing store of value, meaning prices are likely to go up. The demand for gold, particularly in parts of Asia, is another catalyst that is likely to shoot up prices come the next few years.
Investing in gold isn’t the most straightforward venture and requires a substantial understanding of market dynamics. Having a partner such as Gold Eagle could be the proverbial light in the dark when embarking on gold investment. With twenty-two years of experience under its belt, Gold Eagle provides expert analysis on the latest gold price forecast, helping you get real-time market reports for wiser investment choices.
