The Gold Price Forecast is a mixed bag. Several of the conditions that helped the gold price rise in 2016 will remain in place, including rising interest rates in the US. However, there are also some positive factors, such as positive economic data that will support confidence in the US economy. This will affect the Gold Price Forecast.

Geopolitics is another key factor. In addition to broader economic trends, geopolitical developments can also influence gold price. For instance, the US-China trade war is likely to affect the gold market. According to Reuters, as stock prices rose last year, demand for gold remained steady. That’s because gold acts as a hedge against exposure to risk.

Gold is cyclical, and the market is likely to follow a similar pattern to the last two cycles. In this scenario, gold prices will decline to their previous highs, and then rally to new highs. If the market is following a similar pattern, there’s a good chance gold will reach new highs in 2018.

The future of gold prices depends on how the Fed responds to the current global economic climate. Market participants are hoping for the Fed to switch to more dovish monetary policy and lower interest rates. However, this is not necessarily a given. As long as we know that interest rates will remain stable for the foreseeable future, gold is a good investment choice.

Another major risk factor is the U.S. dollar. According to Goldman Sachs’ Gold Price Forecast for 2018, the US dollar is likely to peak in 2017 and weaken significantly in 2018. This should help gold prices, as China is expected to increase their demand for jewellery. This means that the recovery in gold price could be significant. The price of gold will likely go up to around 1,300 U.S. dollars, although this is assuming that the Trump administration’s policies are moderately positive.

Rising interest rates will also affect gold prices. The Federal Reserve started this process and almost all other central banks have followed suit. While increasing interest rates are not always positive for gold, they may prove to be a catalyst for a rate hike in March. If this happens, gold should continue to be sought after as a safe haven by investors.

The Bank of America has also updated its Gold Price Forecast, predicting that gold prices will reach US$1,200 per ounce during the second half of the year. The bank’s long-term forecasts are for gold prices to rise to US$1,375 by the end of 2020. In its Weeky FX Insight, the bank states that the rate cycle and monetary policy will be the driving factors in gold.

Goldman Sachs analysts have lowered their short-term gold price forecast due to a favorable outlook for the dollar. In their view, the US dollar is the greatest threat to gold prices in the short and long-term. However, the fundamentals of supply and demand and historical late-cycle dynamics point to higher gold prices. Analysts also note that there is a negative correlation between the dollar and gold. The dollar has gained 1.3% over the last four weeks, while gold has fallen by 0.85% in that period.