Can AI accurately forecast gold prices? Findings from BullionVault
Image credit BullionVault
With gold reaching fresh highs almost daily there has been a surge in interest of those looking to get exposure to the precious metals with increased trading activity.
In terms of professional forecasts on where the metal could end up in 2024, official forecasts from LBMA put it at $2,059 per troy ounce at the end of the year. However with current prices just shy of the $2,400 mark as of the 12th of April 2024, this prediction is looking less bullish than towards the back end of 2023.
Recent research from BullionVault looked at Chat GPT vs Gemini, comparing the predictions made for 4 key precious metal prices over the quarters of 2024, and the findings may surprise you.
Both Chat GPT and Gemini were bullish on gold and silver
The data gathered in February 2024 gave strong predictions for gold and silver across both of the AI tools.
BullionVault (2024)
Looking at the results for Q1 Chat GPT forecasted gold between $1,700 and $2,200 and Gemini forecasted $2,120 – $2,344. The actual price of gold towards the end of Q1 was $2,234 on March the 31st, so this one is a win for Gemini.
What are the gold and silver predictions for the rest of the year?
2024 has seen a strong start for gold and silver has started to follow the trend too; looking at the predictions from the AI software both tools predict strong ends of the year for gold and silver too.
Gold
Gemini: $2,500 $2,800 (oz)
Chat GPT: $1,750 – $2,350 (oz)
Silver
Gemini: $35 – $40 (oz)
Chat GPT: $21 – $33 (oz)
Chat GPT is far more cautious in its forecasts with a wider range and a lower top end given. With the current geopolitical uncertainty it is easy to see why caution has been used and prices can of course go up and down so it will be interesting to see how results unfold over the coming months and years.
Want to invest in gold and other precious metals?
Whilst AI predictions should of course not be taken as gospel, the trends are strong that gold and potentially some of the other precious metals could have a strong year as we progress through 2024. If you are looking to get exposure to the precious metals market there are a variety of channels you can go through including investing in gold industry stocks, ETFs and buying the physical metal from dealers.
One of the most cost effective ways to invest in gold is through companies like BullionVault who allow you to buy and trade through secure vaults without having to worry about storing it yourself. Always do your own research before making a decision on which route to take.
This content is for informational purposes only and should not be taken as financial advice. Always consult a professional before making any investment decisions. Remember that investing involves risks and is not suitable for everyone. Past performance is not indicative of future results.
