Gold Price Predition
Historically, gold has given investors excellent returns and has been a good hedge against inflation. However, if you invest in gold at the wrong time, you may end up losing money.
For this reason, you should check price predictions from different bodies and experts before you make an investment. In this piece, we shall look at the price predictions for gold in 2022.
How is the Gold Market Performing?
At the moment, an ounce of gold costs approximately $1824.80. The commodity achieved a price of $1876 in 2011, and it wouldn’t reach this price again until August 2020.
In September of 2020, an ounce of gold was sold at $2056, and this has been the highest price of the commodity to date. The performance of gold has been quite poor, given that it only increased in value by 22% over the entire year of 2020.
Which Factors Are Affecting the Gold Market?
A number of issues have affected the price of gold. One of these is the COVID-19 pandemic, which suppressed investor activity. With less certainty about the economy, more people were wary about investing in gold and other commodities.
At the same time, some investors were more motivated to buy gold since it offers high levels of safety. Since banks currently offer very low-interest rates, it has been more profitable for investors to purchase gold. These factors have all helped to push gold to its current price of $1824.
It is worth noting that gold is not commonly used for practical purposes and is mostly just owned as an investment. Some of its purposes include making jewellery and making life-support devices.
Gold Price Prediction for 2022 According to Gov Capital
Gov Capital is one of the most reputable investment platforms, and it issues predictions on the prices of various commodities and investments.
- Gov Capital predicts that gold will have a value of about $1813 by the end of 2021.
- Between January and May, the price is expected to fluctuate between $1811 and $1902.
- For the rest of the year, the price will grow steadily to a maximum of $2089.
The maximum price of gold by the end of the year is likely to be about $2401. Gov Capital predicts that the lowest possible price of gold by the end of 2022 will be about $1773.
Gold is still an excellent long-term investment since Gov Capital expects the price to go over the $8000 mark by the end of 2025.
Gold Price Prediction for 2022 According to Longforecast.com
Long Forecast predicts that gold will have a minimum price of $1915 by the end of 2021. On the higher end, the price might hit $2117.
- As 2022 starts, gold will drop slightly as the global economy recovers. The minimum price of gold in January 2022 will be $1796, and the highest will be about $2016.
- The price will keep rising until April when it will drop slightly to $1891.
- From there, it will keep going up in value until December 2022, when it will settle at $1943. The maximum possible price by the close of the year will be around $2040.
This means an investment in gold today will yield a return of about 7.2% by the end of 2022.
Gold Price Prediction for 2022 According to Lite Forex
Lite Forex also predicts that the price of gold will rise continually throughout the year 2022. By December of 2021, gold will have a low price of $1655 and a high price of $1865. Lite Forex also predicts that the price will fall slightly at the start of 2022.
- In January, it will have a low price of $1630 and a high price of $1810.
- It will further go down in February to between $1610 and $1770.
- From there, the commodity will rise continually in price to more than $1925.
Gold Price Prediction for 2022 According to Wallet Investor
Wallet Investor experts predict that the closing price of an ounce of gold will be about $1845 by the end of 2021.
- In January of 2022, the price is likely to rise to about $1888, and it will increase continuously until the end of the year.
- By December 2022, Wallet Investor predicts that an ounce of gold will have a value of $2086.
- The maximum possible price of the commodity will be about $2074 by the end of the same year.
Wallet Investor predicts excellent long-term returns in the gold market as the prices will increase steadily over the next few years.
Which Currency Pairs Are Correlated to the Gold Price?
Gold has a positive correlation with the UAD/USD currency pair. This means the price of gold typically goes up when the price of AUD/USD goes up, and both investments would depreciate at the same time. Historically, the currency pair has had an 80% correlation to the price of gold.
How Does the US Economy Affect the Price of Gold?
It is also worth noting that the price of gold fluctuates depending on the state of the US economy. If investors are not confident that the US economy will do well, they will purchase gold as a form of protection, and this will lead to a rise in the price of gold.
Conversely, when the US economy is doing well, the price of gold will go down. It is also worth noting that gold transactions are typically done with the US dollar, and this means its price will always react to the state of the US economy.
How Does the Australian Economy Affect the Price of Gold?
When forecasting the price of gold, you should also understand how the Australian economy affects this commodity. Australia is currently one of the biggest exporters of gold in the world, and it contributes about 80% of the world’s gold supply.
Whenever the price of gold goes up, the country will increase its exports, and this will expand the country’s economy.
Golds Correlation with CHF
CHF is the currency of Switzerland, and it has a positive correlation with gold. That means its value goes up whenever the price of gold increases. This also means that an increase in the price of gold will typically come with a decrease in the value of the USD/CHF currency pair.
The relationship between gold and the Swiss currency can be seen in the fact that most of the gold in the world goes through the country. Refineries in Switzerland process about 70% of the total gold in circulation every year.
Using Trading Signals to Make Money Investing
Now that you know how to evaluate the gold market, you should consider investing in this commodity. At XOSignals, we offer free trading signals, and these will let you know the best times to enter various markets. We also have a paid VIP plan that offers extra benefits like long-term strategies, daily market signals, SMS signals, Telegram signals, and US stocks analyses. Sign up today and join more than a million traders on our platform.
Start Getting Free Signals
10,040 registered users
550 users chatting now