Gold prices cool. Should you invest now?

Coming off a few weeks Sustained high prices, Gold is the lowest today since late March. After surging above $2,000 an ounce in April and near all-time highs following the Fed’s latest rate hike in early May, gold price Today back to about $1,960 per ounce.

There are several factors that can contribute to the decline. For one thing, the dollar hit a two-month high this week after inflation showed signs of cooling, According to Barron’s. And when is a possibility A US debt default is coming As some investors sought the safety of gold earlier this month, progress in talks between Washington leaders may seem less urgent.

But if you’re thinking of investing in gold as a safe haven against a looming recession or as a hedge against the ongoing effects InflationIs now still a good time to buy?

As many investors know, volatility is expected in any market, including gold. What’s more, the precious metal has a long-standing reputation for its ability to accumulate value over time. Here’s what to know about Advantages of investing in gold Today.

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Why now is still a good time to invest in gold

Despite gold prices cooling off a bit this week, gold can make a solid addition to your portfolio — and Now could be a great time Investment. Here are a few reasons:

The outlook is still positive

Prices may be slightly lower today, but by a lot Experts hope not That turned out to be a long-term trend. Just this week, several investment strategists expressed a positive outlook for gold next year and beyond.

A Monday reportThe Wells Fargo Investment Institute predicts that gold’s rally could extend into 2024. They cited the potential for a global recession and sticky inflation as two reasons “gold and other precious metals should move higher.”

Likewise, UBS chief investment office strategists released a report on Thursday Despite this week’s losses, gold prices are showing confidence this year. “The yellow metal remains up 8.2% since the start of this year, and we think it could break its all-time highs later this year with multiple mid- to long-term drivers,” the report said.

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Gold can help you diversify

Regardless of what’s happening in the current marketplace, gold can make a solid addition to your portfolio as an anytime approach. diversity.

While traditional investments, such as stocks, offer greater potential for long-term growth, they are also risky. Keeping a portion of your money in relatively stable assets like gold can help you weather more volatile periods in the stock market, which tend to occur during recessions.

With a small allocation – experts tend Recommend around 5% to 10% — In stable assets like gold, alongside investments designed for growth, you can potentially maximize your investment strategy for a long time.

It is a liquid investment

Unlike some other investment types, Gold is highly liquid. Thanks to its centuries-long reputation as a store of value and ongoing strong purchasing power, gold is one of the easiest assets to sell if you ever need to.

You either buy physical gold — such as gold bullion or even jewelry — or you invest in one. Gold IRA or gold ETF, you can benefit from the ability to convert it into cash if needed or you want to use the money towards another investment option.

See if gold investing might be right for you with a free investment guide.

Bottom line

Gold prices may be slightly lower today than earlier this month, but that doesn’t mean your investment will suffer dramatically. In fact, many experts believe that gold prices have yet to reach the peak investors will see until later this year or next.

There is also, outside of how the price of gold may be currently trending Long lasting benefits To add precious metals to your portfolio. Whether you are looking for a way to hedge against inflation, Even when the price is coldor want to diversity Against an impending recession, gold can be a good option for added stability and liquidity over time.