Just before the upcoming release of the freshest United States Consumer Price Index (CPI) figures, gold is currently adopting a cautious stance, consolidating its recent recovery from last week, while the most widely used artificial intelligence (AI) models are sharing insights on its potential value post the CPI data revelation.
Undoubtedly, the value of gold remains near its peak levels following significant fluctuations amidst heightened unpredictability in financial markets the previous week, eagerly anticipating further signs on interest rates following the CPI, a crucial metric projected to reveal slightly subdued inflation in July.
ChatGPT gold price target
Given this backdrop, Finbold approached the brainchild ChatGPT-4o from OpenAI to offer forecasts on the forthcoming gold price post CPI data release. The popular AI model has set a price target between $2,100 and $2,200 per ounce if the CPI indicates reduced inflation or deflationary trends.
Conversely:
“If the CPI signals heightened inflation, gold prices may climb as investors typically view gold as a hedge against inflation. Experts predict that in such scenarios, prices could surge towards the upper end of projections, possibly around $2,500 per ounce or higher based on supportive economic conditions.”
Simultaneously, the AI companion by Meta Platforms (NASDAQ: META), known as Llama 3.1, has presented a bearish scenario (low inflation) within the range of $2,300 to $2,380 and a bullish scenario (high inflation) placing the gold price between $2,500 and $2,600.
Regarding a neutral outcome (in-line inflation):
“Should the CPI figures align with expectations, gold prices might witness moderate fluctuations. Technical analysis hints at prices oscillating between $2,400 and $2,480, influenced by support and resistance levels, as well as investor sentiment which might remain relatively stable in such a scenario.”
Google Gemini gold price target
Similarly, the innovative conversational AI developed by Alphabet (NASDAQ: GOOGL), known as Google Gemini, has laid out three potential scenarios and hypothetical price ranges based on whether the upcoming CPI results surpass, meet, or fall below expectations:
Gold price analysis
Meanwhile, the present value of gold stands at $2,446.49 per ounce, reflecting a 1.5% decrease from its all-time high (ATH) of $2,446.49 per ounce in July this year. Nevertheless, it indicates a 0.54% rise on its daily chart, a weekly decline of 0.48%, and a monthly increase of 0.36% as per data on August 12.
How much is a gold bar valued currently? Currently, a one-kilogram gold bar is estimated at $78,643.24. And the cost of a single gram of gold? Presently, one gram of gold is priced at $78.63 based on the latest available data.
With rising inflation, cash loses value, prompting increased demand for gold as a safeguard against inflation, lending support to gold prices. Hence, it wouldn’t be surprising if the price of this precious metal responds to the CPI data in line with the expectations of the AI models.
On another note, commodities expert Mike McGlone from Bloomberg has noted that gold is “outperforming the AI-based 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,” based on his X post on August 12.
Nevertheless, market trends can swiftly change, so conducting thorough research, risk analysis, and staying updated on relevant news, advancements, and indicators are crucial when considering substantial investments in any asset.
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