The estimated share price of GOLD by January 1st, 2025, is $2,892 with a year-to-year change of +40% from the year-end of 20241. This forecast is based on the latest long-term forecast, which suggests that gold prices will hit $2,700 by the end of 2024 and then $3,000 by mid-2026. The year 2025 is expected to see continued growth, with a peak price of $2,300 anticipated for the year21.
- Historical Performance and Future Projections: Gold prices have shown a compound annual growth rate of 5.90% over the last 45 years, indicating a consistent long-term upward trend3. This historical performance, combined with current economic indicators and market trends, supports the bullish outlook for gold prices.
- Economic Indicators: The Federal Reserve's anticipated rate cuts and the moderating U.S. core inflation to 3.5% in 2024 and 2.6% in 2025 are favorable conditions for gold prices2. Lower interest rates and a weaker U.S. dollar are expected to increase the appeal of gold as a safe-haven asset.
- Market Sentiment: Geopolitical uncertainties and the need for a safe-haven asset during times of economic instability continue to drive demand for gold. The ongoing conflicts in the Middle East and the Russia-Ukraine war have already had a significant impact on gold prices2.
- Expert Predictions: Leading financial institutions like J.P. Morgan and Goldman Sachs are optimistic about gold's future performance. They predict that gold prices could surpass $2,500 per ounce by 2025, driven by persistent low interest rates and ongoing geopolitical tensions24.
In conclusion, the estimated share price of gold by January 1st, 2025, is expected to be significantly higher than its current prices, reflecting the favorable conditions and expert predictions that support a bullish outlook for gold in the coming years.
8/21/2024 05:44am
