Gold Price Forecast 2025

 

There are two predictive Technical analysis methods we can use to forecast future Gold prices.

 

Andrews Pitchfork Strategy

The first is Andrews pitchfork strategy, taught by Dr. Alan H. Andrews during the 1960s and 1970s.

Dr. Andrews' techniques are based on Isaac Newton's Third Law of Motion: Action - Reaction.

Pitchfork drawing provides an elegantly simple way to identify Market trend, support resistance zones, and price targets using one tool.

 

Fibonacci Extension

Our second predictive Technical analysis method is the Fibonacci extension tool which is based on the Fibonacci sequence.

Using a sequence of low-high-low price pivots Fibonacci extension predicts where the next high pivot point (price target) is likely to occur.

The Fibonacci sequence is a series of numbers obtained by adding the two preceding numbers.

Starting with zero and 1, we get: 0, 1, 1, 2, 3, 5, 8, 13, ...

There are several Technical analysis tools based on the Fibonacci sequence. Fibonacci retracement and Fibonacci extension are the most commonly used.

 

Gold Price Forecast 2021

Before we address the price of Gold in 2025 let’s consider what the yellow metal is likely to do in 2021.

The precious metals rallied into a peak in late-August 2020 and then entered a correction that continued into early-2021.

Market pundits believe that after this correction completes Gold will resume its uptrend and break to new all-time-high prices.

There is potential for Gold’s next upleg to be quite impulsive as investors

1) seek protection from inflation and

2) flee other asset classes (like bonds and tech stocks) that don’t perform well when inflation is running hot.

In other words, fear (flight to safety) is a possible driver for the next upward price movement in Gold.

Another potential driver is a growing distaste among retail investors for the games that Wall Street plays with impunity to the detriment of the retail investor.

The Silver Squeeze campaign urging people to buy Silver and take physical possession is an example of this sentiment being expressed in a very public manner. This GoFundMe campaign raised over US$100K in less than one week in order to buy billboard space to promote the campaign of buying physical Silver and taking personal possession of it.

To arrive at a Gold price forecast for 2021 let’s first state some assumptions:

  1. The precious metals are currently in a secular (multi-year) uptrend
  2. Corrections in Gold tend to last 4 to 6 months
  3. A decisive break above the high from 2011 will attract new buyers

If we accept that Gold is in a bull market then a typical correction from the high in August 2020 would be complete somewhere in the January to March 2021 time frame.

If Gold bottoms in March, that leaves 9 months of 2021 where the Market trend in Gold is likely to be upward.

Gold’s upleg in 2020 added $525 in 8 months so similar behavior is possible in 2021.

Starting from an assumed Gold bottom of $1700, adding $525 gives us a price target at $2225.

What we haven’t accounted for yet is that above the 2011 high of $1920 and above the 2020 high of $2075 there are likely to be new buyers who will enter the Gold market as they become convinced that Gold is in a secular bull market.

These buyers could drive an impulsive spike up to some price level above $2225.

If we use the Fibonacci extension tool on a monthly chart of Gold we get a possible price target at $2357.

 

Given that reaching $2225 in 2021 would just be a repeat of Gold’s performance in 2020 and the potential for new buyers above the previous ATHs, Satori Traders is using $2357 as Gold’s potential price target in 2021.

 

Inflation fears and a serious flight to safety could drive Gold well above $2357 in 2021. On a decisive break above that level there are several potential price targets in the $2713 to $2880 range. These targets will be evaluated in detail as events unfold.

 

Gold Price Predictions for Next 5 Years

In the 6:10 minute video below, Gold price prediction charts are used to illustrate different Technical analysis methods and how those methods can be used for forecasting Gold prices.

Consolidating the Gold price predictions of the different tools identifies two potential targets we can use for our Gold price forecast 2025: $2713 and $3465.

$2713 comes from Fibonacci extension on Gold’s monthly chart.

$3465 is a target based on a Schiff pitchfork (variation of Andrews pitchfork).

Both of those targets seem plausible for the 2025-2026 time frame.

 

Satori Traders is using $2713 to $3465 as Gold’s potential price target for 2025-2026.

 

 

Gold Price Analysis Forecast

As highlighted in the video, there are several Technical analysis methods that provide price targets in the $2713 to $3465 range. This table presents those results.

Technical analysis method Price target Year
Schiff variation of Andrews pitchfork $2880 2023
Schiff variation of Andrews pitchfork $3465 2026
Head and shoulders bottom $2765 2030
Fibonacci extension $2357 2023
Fibonacci extension $2713 2025

 

Gold Forecast Next Week

Making a forecast for Gold’s price next week is challenging.

Rising interest rates are causing turmoil in all of the financial markets.

Asset classes are being repriced, including the precious metals.

While an end to Gold’s correction is expected by March, the transition from one trend to another can be choppy.

Let’s look at the current (03/05/2021) chart of Gold and see what we can surmise for next week.

Based on this chart, it appears that Gold is searching for a bottom. Price is approaching the bottom of the correction channel after 7 months of grinding lower.

To allow for current market volatility due to rising interest rates it is best to assume that Gold will make it all the way to the bottom of the correction channel.

The Satori Traders Gold forecast next week is for a continuation of the downward chop as interest rates continue to rise.

A spike down to $1675 is likely with some amount of rebound rally likely from that level.

 

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Satori Traders is here for you

We offer a number of services and products with the intention of supporting you as you navigate the investing / trading world, and in particular, the precious metals sector.

From our website’s home page you can easily navigate to the Mining Stocks page and find detailed information on how to invest in the best mining stocks.

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If you are interested in Technical analysis, we have two offerings for you.

 

Free Precious Metals Newsletter

The first is our free weekly newsletter where we regularly use advanced TA techniques like Andrews Pitchfork and Fibonacci retracement on daily, weekly, and monthly charts. Consider this resource as an ongoing seminar in advanced Technical analysis.

The free newsletter signup is available on the home page of the website.

 

Technical analysis book

The second product we offer for Technical analysts is our recently published book, Harvest Bountiful Trading Profits Using Andrews Pitchfork.

Andrews Pitchfork is by far the most powerful tool a trader or investor can put in their toolkit.

If you have any interest in Technical analysis you need to be aware of Andrews Pitchfork strategy and the 5 rules for using the forks.

The book is available in both print and digital versions here on the website and on Amazon.