DeepSeek is the latest breakthrough in AI-powered chatbots, making waves in the AI industry after surpassing existing models in several key benchmarks—all while reportedly being significantly cheaper to train and operate. Its remarkable performance has been so impactful that it triggered a downturn in several U.S. tech stocks, including NVDA, as concerns arose about potential overvaluation in the sector.
DeepSeek’s bullish case for gold forecasts up to $3,000 per ounce
We asked DeepSeek to provide an analysis of the gold market and predict what will happen to the gold price in the first quarter of the year.
- Bullish Case (e.g., recession, Fed rate cuts, or geopolitical crises): Prices could surpass $2,500 – $3,000.
- Bearish Case (e.g., strong dollar, stable inflation, or reduced demand): Prices might stabilize closer to $1,800 – $2,200.
As for the main factors that will influence the price movements of gold, DeepSeek highlighted the following categories:
- Macroeconomic conditions: Inflation rates, interest rates and currency fluctuations can have a significant impact on the price of gold.
- Geopolitical risks: Wars, political instability and trade tensions tend to increase demand for gold.
- Market sentiment: Investors should monitor demand for gold ETFs and central bank gold sales/purchases.
- Supply and demand: The price of gold can also be influenced by gold mining outputs and demand for gold in industry and jewelry.
Gold has been displaying a strong bullish trend, as it’s up 37.6% against the US dollar in the last year. The algorithmic gold price prediction on CoinCodex is forecasting this trend to continue throughout the next year, as it’s expecting a further 30.5% increase to $3,664 in the next 365 days.
When it comes to the short-term, the price prediction algorithm on CoinCodex is fairly close to DeepSeek’s bullish case, as it expects gold to trade at $2,965 at the end of the first quarter.
Algorithmic gold price prediction for the next year.
