With rising geopolitical tensions, inflation uncertainty and fears of recession spreading across the world, gold has become a preferred commodity for investors. Thus, the shiny metal rose to peak levels this year. Some analysts are talking about $3,000 prices for gold. Okay, but when? So we asked artificial intelligence to give an idea.
Gold impressed with its performance this year!
cryptokoin.comAs you follow from , gold performed quite well only in 2024. The yellow metal renewed its record, rising from $2,062 at the beginning of this year to over $2,400 in June. In this process, the US inflation data indicating a cooling down was also effective.
Currently, from a technical perspective, $2,300 is currently acting as immediate support. Moreover, it is followed by the $2,285 zone. In contrast, the next resistance zone aligns at $2,338. Despite US CPI coming in lower than expected, geopolitical tensions showing no signs of abating, and rising inflation fears around the world, uncertainty about gold’s possible trajectory remains. So we turned to OpenAI’s ChatGPT to estimate the timeframe for reaching the $3,000 mark.
The most plausible timeline for gold to reach $3,000
According to ChatGPT, major economic crises or a significant market downturn could accelerate gold demand, while further geopolitical instability or significant currency devaluation could also send prices soaring. Considering potential growth scenarios, the AI bot makes a prediction that market conditions support a stable growth rate of 10%. In this case, he predicts that gold could reach $3,000 in the next 3 to 5 years. However, if growth occurs at a more modest level, such as 5%, this period may be 5 years or more. In this context, ChatGPT makes the following assessment:
Given the current price of $2,339 and potential growth scenarios, it seems reasonable for gold to reach $3,000 per ounce in the next 3 to 5 years if market conditions support a steady growth rate of 10%. However, if growth is more moderate (around 5%), it may take closer to 5 years or some time.
Based on historical trends and current market factors, LLM suggests that gold could reach $3,000 by 2027, assuming the annual growth rate remains constant and there are no major disruptive events. Given the current annual growth rate of 13.4%, ChatGPT predicts gold will reach $3,000 by mid-2026. This projection assumes that the growth rate will remain constant and that no significant economic or geopolitical disruption will change market dynamics.
Metals Focus: $3,000 is a lot!
Central banks around the world, especially China, are increasing their gold reserves due to currency depreciation and concerns about geopolitical and economic risks. Most analysts and traders are bullish on gold. However, they believe the chances of the precious metal breaking $3,000 are currently low. Nikos Kavalis, managing director of Metals Focus, comments:
Rather than a specific factor holding gold back, it means $3,000 will be 30% higher from here, which is quite a lot considering we’ve already made some pretty big gains.
Citi Bank: Gold could reach $3,000 in the next 12 months!
However, Citi analysts say gold prices could reach $3,000 in the next 12 months due to strong physical demand, central bank purchases and positive macroeconomic conditions. Although the increase is non-linear, the average price is expected to rise in the second half of 2024 and into 2025, frequently testing all-time highs.
Key factors supporting this forecast include the resilience of gold prices despite a strong US dollar and higher interest rates, and the potential for US growth to weaken and yields to fall. Uncertainties regarding US elections and financial policies may also increase demand for gold. Additionally, the expected easing cycle from the US Federal Reserve and strong gold purchases by emerging market central banks also support this bullish outlook.
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