What is the price forecast for gold?
The price of gold has been on a steady incline for the last three years. This is because investors and traders have been moving away from paper assets and into physical assets. There was also a significant amount of funds coming from China which has been buying up physical commodities to help grow its economy.
The rising prices for gold might not keep going up due to several factors. One of those factors is the growth in central bank holdings of gold which might not continue if the trend reverses its course. We will have to wait and see how this continues to play out, but it is really likelihood that we are going to start seeing more dips in the price over the next few years.
The World Gold Council reported that the gold price declined by 1.2% in the month of June, which is the largest single-month decline since 2011.
Price Forecast for Gold
The bull market for gold is expected to continue during 2015 as well as 2016. In fact, most of the major players such as JP Morgan, Goldman Sachs and Deutsche Bank have all predicted an increase of at least 10% over the next two years. With strong demand from investors coupled with a decreasing supply of gold, we can expect to see more gains throughout this year and next.
Gold ETF Holdings:
A look at the most important ETFs having to do with gold buying and selling and the supply of gold.
While central banks have been diversifying their holdings away from barter receipts and toward gold ETFs, there has been a slow but steady decline in the number of gold-backed ETFs. The loss in demand for these funds can be attributed to their similarities to financial instruments that are based on stocks, bonds, futures and commodities.
Gold Bar Reserves:
Gold reserve data is widely used by investors, speculators, traders and others as a relevant indicator of the current status of supply over demand for the metal. We can use this data to forecast how this demand is likely to evolve over time.
Gold reserves are mainly held by central banks, which form the majority of total gold reserves, but they are also the most diverse in terms of composition. The most important currencies in terms of gold reserves include – pounds sterling (33.8%), euro (31%) and US Dollars (14.6%).
In addition to the central banks, there is a very wide range in the composition of gold reserves held by various other entities including sovereign wealth funds/wealth funds, pension plans/401K plans, retirement and savings plans, insurance firms and companies.
Gold Price History
We have a long-term analysis that looks at price history going back over 2 years with our Price Forecast for Gold. If we look at a weekly chart and filter the data on by year, we can see that each of the 7 up bars was followed by two down bars, which is why we have seen a steady incline over the last two years.
Gold Price Analysis
With gold prices looking to move lower over the next few years, it will be important to understand why they might drop further. This is where our Gold Price Forecast comes in handy. Our price analysis will show you when prices might go down in the future, as well as what your possible options are in regards to investing/trading gold. We also have some articles that touch on different topics that investors should be keeping an eye on.
Price Charts for Gold
If you are interested in looking at some charts for gold, you should head over to our price analysis page here and look at our Gold Price Forecast. They show the price movement over a period of time with all of the different possible scenarios that can play out over this period.
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