There is some thoughts that forecasting the price of gold isn’t all about predicting the market, but actually the idea of marketing the prediction itself. With that in mind, not every prediction should be taken too seriously. However, there are values that can be found in forecasting. The forecast of the market isn’t about the prediction of prices but more about an overview of the future situation that is mostly based on the ongoing and current trends.
However, it should still be noted that many forecasts and predictions completely rely on the source and data that was analyzed. A great deal of the time, these predictions and forecasts wind up being wrong. This is very dangerous due to it affecting how traders and investors react. Forecasts and predictions should only be used to get a quick general idea, but more research should be done before you make any decisions within the gold market.
There are many floating ideas on how the gold market will look in the year 2015. Roseland Capital’s Senior Economic Adviser, Jeffrey Nichols, predicts that gold investors will be having a good year. Although it may seem uncertain right now, he is confident that by this time next year, the price for gold will reach historic heights, and higher in the coming years. His estimation is due to a few points, monetary policy and U.S. economic performance. Wall Street has been booming in the stocks and bonds market, making it a tough competitor for gold, but it is speculated that this trend will slow down. With funds slowly drifting away from stock investments, that will only mean a flow towards gold.
Another positive prediction comes from Marc Faber, who predicts that gold will rise as high as $3,600 by 2018 and even up to over $7,000 by the time 2021 comes. This forecast is based on money supply and monetary base. Some analysis shows that the demand for gold is Asia is getting stronger, while the mining of gold supply is slowing down. This suggests that the demand for gold will be very high, with many western countries requesting for their gold that is stored in London and New York to be returned.
Not all predictions are positive, however. JP Morgan has recently revised their forecast on gold price to be 4% lower at $1,220 per ounce with lower inflation, higher US interest rates, reduced inflation expectation and a stronger US dollar effecting the outcome. Sources have shown that both the Asian and Western countries have been mostly missing from the gold market during the year 2014. Asian gold consumers have been reluctant to enter the scene with gold prices above $1,260.