Gold prices could soar to $3,500 an ounce before the end of 2025 if inflation starts to rise. This is reported by Business Insider with a link to the forecast of Yardeni Research President Ed Yardeni.
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How the price of gold will change
The head of Yardeni Research predicts that by the end of next year, gold prices could rise to $3,500, or 49%. This is because inflation could follow the path it took in the 1970s, when prices began to spiral and gold rose from $35 an ounce to a peak of $665 an ounce.
“The price of gold has rushed to a new high level. Another wage-price spiral associated with rising oil prices will be very reminiscent of the Great Inflation of the 1970s, when the price of gold skyrocketed. In this scenario, the price of gold by 2025 could be $3,000-$3,500 per ounce, which is a realistic target,” Yardeni said in a note to clients.
Read: Gold updated its historical maximum: why its positions are vulnerable
What is happening with gold
At the beginning of the week, gold prices continued their record growth and reached another historical maximum, exceeding $2,375 per ounce.
Gold appears to have received some push from investors who are looking much further ahead on issues such as debt sustainability, according to BNP Paribas Wealth Management chief investment officer Shing. Like Parker, Shing also noted the role of demand from central banks in the rise in gold prices.
As the Ministry of Finance wrote, the world's central banks in February, according to preliminary estimates from the World Gold Council (WGC), purchased gold and foreign currency reserves 19.1 tons of gold. This is 2.4 times less than the updated January results (45.4 tons), and yet the increase has been continuing for 9 months.