How high will the price of gold go? Here’s what some experts think

Since then she has become a leader in the Financial Independence, Retire Early (FIRE) movement and has over 300 bylines in prominent publications including Money, Bankrate and Investopedia on all things personal finance. A former award-winning claims specialist with the Social Security Administration, Rae continues to share her expert insider knowledge with Forbes Advisor readers. You should invest in gold if you’re looking to hedge against risk or diversify your portfolio. When you hold a diversified mix of different assets, including gold, varying returns can protect the value of your investments. “The fact that gold has broken out to a new all-time high and has no technical overhead supply is positive for the long term,” says Stephen Akin, an investment advisor at Akin Investments in Charleston, South Carolina.

Gold Price

Studies have found that gold may be an effective inflation hedge, but only over extremely long periods of time, measured in decades or centuries. Tim Maxwell is a freelance writer who covers investing, real estate, banking, credit education and other personal finance topics. Similarly, Eric Croak, CFP and svs securities plc has been approved as a member at ngm president of Croak Capital, a wealth management firm in Toledo, Ohio, says a “combination of specific factors” have spurred gold’s soaring price, but one factor may weigh more heavily. “The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and the company’s robust monthly eComm sales suggests a sharp uptick in momentum since the launch,” the April 9 investment note said. She’s been a journalist for more than 10 years covering business, personal finance, and investing news. This shows that people have always been fascinated by gold and by its rarity, durability and beauty.

Consider your risk tolerance level and consult your financial advisor or accountant to ensure the asset aligns with your overall investment plan. Certainly, economists and precious metals analysts largely agree that uncertainty in many sectors is leading the flight to gold. Investors considering the precious metal, then, would be served by understanding where the price of gold could be heading.

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The supply of new gold, demand of gold bullion and currency fluctuations all play a role, not to mention action in the gold futures and options markets. That said, Goldman Sachs Research expects gold holdings in Western exchange-traded funds to gradually increase as interest rates fall, which would be in line with their historical relationship. Even as central bank buying of gold may be moderating, there could be some competition for gold bullion between central banks and Western investors as gold ETF holdings begin to climb. Still, the gold price continued to soar in recent months as investors grew increasingly confident that the Fed would cut interest rates.

1. Other central banks, including India and Turkey, are also increasing their gold reserves.
2. A downturn in the global economy, however, could weigh on demand and limit the precious metal’s gains.
3. This is followed by the $2,622-2,620 intermediate support and the $2,600 round figure.
4. However, we can look to leading indicators and fundamentals to understand what gold’s future performance might look like.
5. The highest gold reserves are located in the USA (around 8.133 metric tons/287 million ounces).
6. When the prices of stocks, bonds and real estate drop sharply, gold may hold its value—and can even appreciate as nervous investors rush in to buy.

METALS BEARISH THEMES

Investors also regard gold as a hedge against inflation, betting bullion will retain its value when prices rise. Investments in gold are seen as a safe haven and a crisis-resistant capital investment. It is possible to invest in the yellow precious metal both in the form of securities and through a physical purchase. Gold in its physical form can be purchased from banks, coin and precious metal dealers as bars or bullion coins. However, the safe keeping of gold at banks usually gives rise to considerable costs which are not incurred when securities are traded.

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But compare hargreaves lansdown vs trading 212 for fees safety and more interest in the asset has grown after June’s softer inflation data and some recently dovish comments from Federal Reserve Chair Jerome Powell combined to raise the odds of rate cuts coming this year. Markets are pricing in 100% odds of a rate cut in September now, according to futures trading tracked by the CME FedWatch tool. As an asset that doesn’t offer any yield, it typically becomes less attractive to investors when interest rates are higher, and it’s usually more desirable when rates fall. While that relationship still holds, central bank purchases have been a powerful force, resetting the level of gold prices higher since 2022, Goldman Sachs Research analyst Lina Thomas writes in her team’s report.

Some experts also attributed the rise in gold prices to geopolitical uncertainty and unease surrounding the coming U.S. presidential election. A perception of global instability often induces investors to purchase gold as means of safeguarding their funds in a millennia-old asset viewed as immune to major swings in global economic performance, they added. Central bank buying has driven the rise in gold prices since 2022, according to the note.

For instance, the US, France, Germany, and Italy have gold holdings that make up 70% of their reserves. Seen that way, some central banks in emerging markets are catching up to their counterparts in developed countries. In the XAU/USD Price Forecast 2024, our analyst, Eren Sengezer, notes that Gold carries its bullish potential into early 2024 on prospects of a looser Fed policy, lower US bond yields and a weaker USD. A downturn in the global economy, however, could weigh on demand and limit the precious metal’s gains. A lack of progress in the Fed’s efforts to lower inflation, on the other hand, could cause XAU/USD to turn south.Read more details about the forecast. Gold price (XAU/USD) hits a fresh two-week top stock trading 101 with robinhood update during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark.

This is followed by the $2,622-2,620 intermediate support and the $2,600 round figure. A convincing break below the latter could make the Gold price vulnerable to accelerate the fall towards the 100-day SMA, around the $2,560 region, en route to last week’s swing low, around the $2,537-2,536 area. Failure to defend the said support levels will shift the bias back in favor of bearish traders and set the stage for deeper losses. Buying shares of a gold ETF is the easiest way to get exposure to gold for beginning investors. Owning physical gold—bars and coins—involves additional costs and risks, while shares of individual gold stocks can also be risky.