To estimate the potential of gold in the coming years, we need to understand the direction in which XAUUSD will move once the triangle is completed. Analysis of the price history of several instruments under similar conditions points to a more likely bullish breakout. Once the upper edge of the triangle is broken, the target price will be located on the boundaries of the second global area, between 1950 and 2000 USD. A small pullback may then occur, but if the buyer is strong enough, the price may exceed the boundaries between areas 1 and 2, reach the previous all-time high of 2074 USD, and even update it.
For those looking to capitalize on this potential, now is a great time to set up a Gold IRA and take advantage of this opportunity. The next target will then be the level of 2350 US dollars. 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.
Since a gold investor does not receive any cash flow during the holding period, it is impossible to value gold using conventional valuation methods. A multiple of the ratio between the price of gold and PE of 26 pence per 500 pence can be used to assess the valuation attractiveness of gold. If the cost of producing gold is reduced due to technological advances, the supply of gold will increase. We expect gold prices to rise in the future, although the World Bank predicted that gold prices would fall to 1500 in 2025 and 1600 in 2030.
When U.S. government bond yields rise, gold is likely to trend sideways or even downward, while falling yields tend to cause very positive movements in gold prices. Therefore, if the exchange rate of one of the currencies (for example, the dollar) depreciates in relation to the other reserve currencies, while preserving the purchasing power of buying gold in other currencies, the logical consequence is the increase in the price of gold relative to the depreciated currency. Gold production: Although the supply of gold never decreases, an increase in production can also significantly affect the price of the precious metal.
A low interest rate environment is good for gold prices because of the lower opportunity cost of holding gold. By placing the Fibonacci grid on the gold price pattern, we will see some stages of development of the lifespan of the gold trend. Jewelry and industrial demand: The demand for gold by jewelry manufacturers and other companies that use gold in their products can affect the price of the metal. Gold is not only known for being a factor that diversifies portfolios, but because fears of inflation are increasing, investors tend to turn to gold because it is considered a good hedge against rising prices.
Therefore, people like to have gold during times of higher inflation, which could be a great catalyst for rising gold prices in the future. Gold has proven to be an excellent long-term investment and gold prices have multiplied six times since 2000. The return on gold in Indian rupees is significantly greater than the return on the appreciation of the price of gold. A substantial change in policies related to investment in gold by powerful sovereign governments such as China and India can have a significant impact on the value of gold.
Now that you can see how the price of gold has changed from 1969 to the present day, it's time to move on to gold price predictions and forecasts for the coming years.