Gold A Commodity Overview
Written By Sean Dealy
According to a gold price forecast created by Investment Haven, the forecasted prices of gold for the coming years are bullish. They predict the max gold price for the year of 2025 to be $3,275 and is only predicted to increase from this year and on. Starting with 2026, gold prices are predicted to reach $3,800, for 2027 prices are predicted to be $4,400, and for 2030 they have the max price of gold coming in at $5,050. While it's not uncommon to see year over year positive price predictions for gold it is strange that companies like Investment Haven are predicting such bullish price fluctuations for this malleable precious commodity. So why do people think Gold is going to have such a good run through the foreseeable future? Well there are a handful of colluding factors that we will dive into. The first one being that as early as the beginning of 2024, Gold had begun to set all time highs in every major currency around the world as seen in the chart below.
Across many nations around the world Gold prices have drastically increased
One of the driving factors behind this globalized increase in the price of gold is the large and widespread economic uncertainty and instability that make investors gravitate towards more tangible concrete assets like gold. Gold, unlike many other investments, is an investment that comes with very little volatility. This makes gold an enticing investment vehicle in times of economic uncertainty because its value is inherent. With banks pumping money into the economy like never seen before, an anti-inflationary asset like gold becomes increasingly attractive to investors trying to mitigate inflationary risks with-in their portfolios.
Now that we’ve evaluated the increasing demand for gold, let's take a look at the supply side. The supply of gold has been relatively constrained over the past few years due to declining mining outputs. As demand continues to rise but the supply remains limited. Being said the basic economic principle of supply and demand suggests that gold prices will continue to rise.
