Amid the recent escalation of geopolitical tensions, including Israel striking the Rafah area in the Gaza Strip after Hamas had fired rockets toward Tel Aviv, the price of safe-haven assets has started to rise, particularly that of gold, but artificial intelligence (AI) algorithms remain on the fence.
Indeed, as the conflicts around the world continue, and some of them intensify, support for the yellow metal is growing, but the lower bets for the United States Federal Reserve rate cuts this year might put some selling pressure on it as they make gold less attractive as a store of value.
AI gold price prediction 2024
In this context, one AI algorithm, which uses technical analysis (TA) indicators, chart patterns, support and resistance levels, and macroeconomic and political situation, predicts that gold would reach $2,921.82 by December 31, 2024, which would suggest an increase of 23.50% from its current price.
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Elsewhere, ChatGPT-4o, the most recent and advanced model of the OpenAI brainchild ChatGPT, has offered a rather bearish price range between $1,900 and $2,400 per troy ounce, citing the World Bank and Citigroup (NYSE: C) as well as the current geopolitical tensions and Fed rate expectations.
“This range encapsulates various expert predictions, current market trends, and the potential impact of geopolitical events and economic policies. It is crucial to keep monitoring ongoing economic indicators and geopolitical developments to refine these estimates as necessary.”
At the same time, Claude 3 Opus, the recent AI model by Anthropic, has set gold at the “most likely range” of $2,350 – $2,450 per ounce by the end of 2024, “with a potential low around $2,300 and a high up to $2,500 based on the current price action and economic backdrop,” slightly more optimistic than its counterpart.
Gold price analysis
Meanwhile, gold was at press time trading at $2,365.90, recording a 0.39% gain on the day, a decline of 4.01% across the past week, and a modest advance of 0.35% on its monthly chart, as it has added 14.11% to its value since the year’s turn, according to the most recent data on May 27.
So, how much is a gram of gold worth at the moment? Currently, the price of a gram of gold stands at $75.07, whereas a kilogram of gold would cost $75,070.25. And how much is a gold bar worth? Notably, a 400 oz gold bar would cost $934,628, while a 100 oz one is $233,657.
It is also worth noting that cryptocurrency expert Michaël van de Poppe has recently observed the “extremely low (…) valuations of Crypto & Gold, Silver compared to the Dollar & Equities,” adding that “we’re on the edge of a big bull cycle in hard assets overall, commodities included,” as Finbold reported on May 23.
Ultimately, gold might continue on the path set by one of the AI platforms above, or it could skyrocket during the upcoming bull rally predicted by the crypto expert. Considering that the markets make sudden turns based on both inside and outside factors, doing one’s own research is critical when investing.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
