Just prior to the imminent unveiling of the latest United States Consumer Price Index (CPI) data, gold is presently maintaining a careful position, consolidating its recent rebound from the previous week, while the most commonly used artificial intelligence (AI) models are sharing insights on its potential value post the CPI data disclosure.
Without a doubt, the worth of gold remains close to its highest levels following significant fluctuations amidst increased uncertainty in financial markets the preceding week, eagerly awaiting further clues on interest rates following the CPI, an essential indicator anticipated to expose slightly subdued inflation in July.
ChatGPT gold price target
Considering this context, Finbold engaged with the brainchild ChatGPT-4o from OpenAI to provide predictions on the upcoming gold price post CPI data release. The well-liked AI model has established a price target ranging from $2,100 to $2,200 per ounce if the CPI suggests reduced inflation or deflationary trends.
On the contrary:
“In case the CPI indicates heightened inflation, gold prices could increase as investors traditionally perceive gold as a protection against inflation. Experts anticipate that in such circumstances, prices might surge towards the upper boundary of estimates, potentially around $2,500 per ounce or higher depending on favorable economic conditions.”
At the same time, the AI sidekick by Meta Platforms (NASDAQ: META), recognized as Llama 3.1, has outlined a bearish scenario (low inflation) in the bracket of $2,300 to $2,380 and an optimistic scenario (high inflation) positioning the gold price between $2,500 and $2,600.
Regarding a neutral outcome (consistent inflation):
“If the CPI figures align with expectations, gold prices could witness mild fluctuations. Technical analysis implies prices oscillating between $2,400 and $2,480, guided by support and resistance levels, along with investor sentiment which might remain relatively steady in such a situation.”
Google Gemini gold price target
Likewise, the inventive conversational AI developed by Alphabet (NASDAQ: GOOGL), recognized as Google Gemini, has presented three potential scenarios and theoretical price ranges based on whether the upcoming CPI results exceed, meet, or fall short of expectations:
Gold price analysis
Meanwhile, the prevailing value of gold stands at $2,446.49 per ounce, indicating a 1.5% decline from its all-time high (ATH) of $2,446.49 per ounce in July this year. Nevertheless, it signifies a 0.54% increase on its daily chart, a weekly decrease of 0.48%, and a monthly growth of 0.36% as per data on August 12.
What is the current valuation of a gold bar? At present, a one-kilogram gold bar is valued at $78,643.24. And the price of a single gram of gold? Currently, one gram of gold is priced at $78.63 based on the most recent available data.
With escalating inflation, cash loses its value, prompting heightened demand for gold as a shield against inflation, providing a boost to gold prices. Therefore, it would not be surprising if the price of this valuable metal reacts to the CPI data in accordance with the predictions of the AI models.
In a different context, commodities expert Mike McGlone from Bloomberg has observed that gold is “outperforming the AI-powered S&P 500 on a year-to-date, one- and two-year basis up to Aug. 9, which might lead to an excessive burden for beta to continue rising and evade deflationary influences amidst the inflation upswing towards the 2022 peak,” as outlined in his X post on August 12.
Nonetheless, market trends may swiftly shift, hence conducting thorough research, risk assessment, and remaining updated on pertinent news, advancements, and indicators are vital when contemplating significant investments in any asset.
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