Most people investing in gold want to know the forecast for the future. No one truly has a crystal ball to tell you exactly what’s going to happen, though. The year 2016 had plenty of ups and downs. The market was booming for the first six months or so before stabilizing. So investors are wondering whether their gold investment will continue the trend of stabilizing or going downward, or if another peak is expected. We looked at many different trends and statistics to provide you with our gold forecast for 2017.
Could Trends Suggest a Decrease in Gold’s Value?
Since the U.S. presidential election, gold prices have dropped by more than five percent. The good news is this isn’t a significant amount when you take it at face value. While the current price of gold has recently dipped below the $1,250 per ounce mark, the market could easily make a comeback within the next year. Experts aren’t optimistic, but the market has surprised us in the past with its resilience and very well could again.
Fear Could Drive Gold Prices Up or Down
Fear is what made gold trading popular earlier in 2016. People were fearful about the markets and global economy, which made them invest more heavily in gold. However, once the fear was stabilized during the summer months, the price began to level off and slowly fall.
Should the market continue to plummet as the new year settles in, we may witness a rise in the price of gold due to increased buying. This could very well be what brings gold rates back to their former glory, saving the market. If so, this will be a great turn of events for investors.
Best and Worst Case Scenarios
Before the presidential election, some experts were predicting the price of gold would skyrocket. Those predictions became even more widespread as it became a realistic outcome that Donald Trump could win. The market could still turn around with the uncertainty surrounding Trump’s election, but it’s still too early to tell.
Some experts have predicted the gold price to go as high as $1,500 per ounce. Others say the price could dip as low as it’s been in multiple decades at less than $900 per ounce. More than likely the price will fall somewhere in the middle throughout 2017, but the trends suggest lower prices at this point. No matter what happens, the key is to not sink into despair. The gold market is and has always been an important facet of the economy, and can weather any storm.
Be sure to visit our website for the latest news and trends for the gold market now and throughout 2017!
