2 factors are influencing gold prices now

Gold prices have had a successful few weeks.

After hitting near all-time highs last month, gold price has been steadily near or above the $2,000 threshold for several weeks now — where Some experts believe It may contain or even exceed.

But why is gold going so well? It has a lot to do with what makes gold Good prospects for long term investors In the first position. As a historically safe investment choice, concerns about inflation and a potential recession, in particular, may cause more people to consider Invest today.

Learn more about your gold investment options with a free information kit.

2 factors are influencing the price of gold today

Over the past few months, many aspects of our financial lives have been pretty messed up. From high inflation and rising interest rates to banking crises, there is no shortage of volatility.

For investors, gold can act as a hedge against inflation and a way to offset losses during recessions. As more people invest in gold, it can push its value higher – which can lead to greater benefits for investors.

Inflation

As inflation continues to make the cost of everything from housing to fuel to travel more expensive, it also lowers the value of the US dollar.

And while the Federal Reserve’s Ongoing interest rate hikes While inflation has helped reduce the 8% to 9% a few months ago, prices are still high. recent Consumer Price Index Shows that prices rose a total of 4.9% year-on-year in April.

But gold time keeps its value A period of high inflation and often charts an inverse relationship with the value of the dollar. Investors look to gold Inflation hedge Today’s high gold price may be one of the reasons. While we can’t predict where prices may go in the future, putting some money in gold today can be a good way to help mitigate some of the effects of inflation while it remains high.

Explore how you can invest in gold today with a free investment guide.

Worries about recession

Another reason for gold’s rising value—and investor interest in it—is its potential recession next month

just no Federal Reserve Dr There may be a “mild recession” this year, but many Americans expect a recession amid high prices. Bank failure and overall uncertainty.

Because gold remains stable even when traditional stock and bond markets decline, Diverse with gold Often a good way to withstand market downturns. Diversification is a smart investment strategy in any economic environment, but when faced with uncertainty, it can be helpful to maintain some safety in your portfolio.

Bottom line

Gold prices have rallied in recent weeks, and some believe they could rise — at least as long as inflation remains an issue and recession remains a possibility. If you are looking for a way Protect your portfolio Against volatility, it may be worth considering whether investing in gold is right for you.

As with any investment, make sure your plans align with your long-term investment goals. a lot Experts recommend Any gold investment keeps around 5%, so you can still realize profits from traditional markets over time. If you’re unsure, consider talking to a professional like a financial advisor about your options.

Learn more about how to invest in gold with a free investor kit.