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Gold price prediction: What is the gold price today, how high will it go?

The gold market has surged surpassing its longstanding record as the dollar plunged. For investors, gold prices are at a record high and many are predicting these prices could continue to surge as geopolitical uncertainties drive a rush for safer assets. But what is the gold price today and what do analysts expect for the future trend of gold?

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What is the gold price today?

At the time of writing the current price of gold is £48.57 ($ 62.38) per gram and £48,574 ($ 62,380) per kilo, according to BullionVault’s gold price chart.

The current gold price per ounce is £1,510.82 ($ 1,940.23).

Last week, the gold price week high hit $ 62,514.55 (£48,714.15) and the week low hit $ 58,185.46 (£45,340.73).

READ MORE: Gold price: Gold could be vulnerable to market turmoil caused by virus

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Gold price prediction: What is the gold price today? (Image: GETTY)

Gold price prediction: Gold price hit £48.57 (Image: PA)

In the morning of Asian trading hours on Monday, spot gold traded at about $ 1,931.11 (£1504.81) per ounce.

This figure was reported after earlier trading as high as $ 1,943.9275 (£1514.80) per ounce.

Those levels eclipsed the previous record high price set in September 2011 of $ 1.920.30 (£1,496.38).

Gold futures were also up 1.54 percent to $ 1,926.70 (£1,501.37).

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Gold price prediction: The pattern of gold prices for the past week (Image: BULLIONVAULT)

What is driving gold prices higher?

Geopolitical tensions between the USA and China have escalated which has weighed on investor sentiment driving interest in gold.

The weaker dollar and fears about the global economic recovery following the coronavirus pandemic has driven gold prices higher.

The increase in demand for gold is because it is a safe haven asset, which means it is considered a safer investment amid uncertain economic times.

Gold stands out not just because of its historical role as a store of wealth and a hedge against waning purchasing power, but also because of its potential for explosive gains going into 2021.

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How high will the gold price go?

Gold bulls thrive on fear and uncertainty, which in the current global market is likely to continue for much longer.

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Prices of the precious metal have soared by close to 30 percent this year.

Such events as the US ordering the closure of China’s consulate in Houston and China’s vow to retaliate embolden Bullion bulls and drive risk-averse investors to take refuge in safe-haven assets.

Gold prices could surge beyond $ 2,000 (£1,558.49) this year the latest predictions from analysts reveal.

Gold price prediction: Gold bulls thrive on fear and with the pandemic this uncertainty could lead to more highs in gold prices (Image: PA)

Commonwealth Bank of Australia’s Vivek Dhar, mining and energy commodities analyst told CNBC: “We think the current momentum in the next few months will cross the $ 2,000 an ounce mark.

“The key question is how much does the rally increase after that.”

Gold prices could even surge beyond $ 2,500 (£1,948.11) per ounce according to Mr Dhar.

Precious metals dealer J. Rotbart & Co. managing partner Joshua Rotbart also predicted gold prices would soar beyond $ 2,000.

He told CNBC: “With current conditions of loosening monetary and fiscal policy, global recession, unemployment and governments cannot control this. I think we will see (gold prices) heading over the $ 2,000 mark.”

Are gold prices going to crash?

The future trend for gold prices depends on this week, particularly the Federal Reserve’s rate announcement on Wednesday.

Analysts believe the Federal Reserve will hold the interest rate at the current level, which will impact the dollar price and subsequently affect gold prices.

A dovish monetary policy stance typically proves harmful to the dollar and positive for the gold price and vice versa.

Gold traders will be watching the stance of Federal Reserve policymakers when they meet later this week.

Expectations are that interest rates will remain near zero, while markets will also be watching for any signals around shifts in strategy.

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