Gold prices ended 2017 at $1,302.80, up 13.6 percent for the full year. The yellow metal’s high for the year of $1,349.55 was hit in September, reported the historical price of gold chart. So far in 2018, gold has surpassed last year’s peak price with a high of $1,357.70 on January 24, but where will prices be by the end of the year?
UPDATED: Gold Price Predictions for 2024
Will the price of gold go up or down in 2024? What trends should investors be watching? Read the forecasts here: Gold Price Forecast 2024
Gold Price Predictions for 2018
The Bloomberg Contributor Composite, which averages all gold price forecasts submitted to the organization, predicts the yellow metal will average $1,342 in the second, $1,350 in the third, and $1,358 in the last quarter of the year.[1] Similar to the gold price forecast of 2017, market views on the direction of gold prices are quite bullish for 2018. Some other specific market calls range from reasonable to excellent for 2018.
Notable Gold Price Predictions for 2018
| Source | 2018 Gold Price Prediction (per ounce) |
|---|---|
| Scotiabank | $1,300 (average for year) |
| Bank of America Merrill Lynch | $1,326 (by yearend) |
| Landesbank Baden-Wuerttemberg | $1,400 (by year end) |
| Bank of China International | $1,400 (by yearend) |
| Commerzbank | $1,500 (by yearend) |
| Jim Rickards | Past $1,400 (by yearend) |
| Jim Sinclair | $10,000 |
What Could Affect Gold Prices in 2018?
Market observers of the precious metals complex will no doubt be aware of the upward pressure that has been building on the price of gold. The following factors are the keys to understanding the future of gold in 2018:
- Fears of political and economic turmoil driving demand for gold in a flight to quality.
- A weakening dollar, despite interest rate hikes.
- Growing demand for gold jewelry in China as the country grows richer.[2]
- A possible rebalancing of Chinese foreign exchange reserves, away from dollars to other currencies.
- The failure of Bitcoin to deliver on claims that it would challenge gold’s status as the most popular alternative investment.
- A surging oil price pulling all parts of the commodities complex higher.
- Runaway national debt plaguing the economy and fueling fears of a total collapse of the financial system.
Read more about How These 10 Factors Regularly Influence Gold Prices
Gold Rally in 2018?
After gains in 2017, one might think that gold could cool off in 2018. Yet, with escalating political and economic problems continuing to drive demand for gold, the markets could see significant price jumps throughout the remainder of the year. In fact, Thomson Reuters GFMS recently predicted the price of gold could reach $1,500 in late 2018! While some volatility is to be expected, savvy investors will take advantage of any dips in the price to get in on the buying opportunity.
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