Where is the price of gold going? Here’s what the experts say

gold price Been high for some time. In mid-April, the spot price reached $2,048 World Gold Council — They are the highest since the August 2021 all-time high of $2,067. They have fluctuated in the weeks since then but have largely remained near the $2,000 mark.

Investors looking to add gold to their portfolios may wonder how long this trend will last. Can the price of gold rise? Now is a good time Invest in gold? We spoke to some experts to get their take.

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Where is the price of gold going?

We have recently seen the results of high prices Increase in interest ratesincessantly Inflation And worry about a prospect recession. Gold has historically been considered a safe haven during times of economic turmoil, so when investors are concerned about financial news turned into gold To protect their money. This increased demand drives up prices.

And since the news doesn’t seem to be improving, some experts think gold prices will remain stable even if they don’t rise.

“I expect gold prices to rise in the near term,” said Noah Damsky, CFA and principal at Marina Wealth Advisors. “Gold prices may rise during volatile times. Where we are in the market cycle, I would expect gold to benefit from a bumpy road ahead as a result of debt ceiling talks, an inverted yield curve and inflationary pressures.”

Additionally, the price of gold is often closely linked to the value of the dollar. When interest rates and inflation are high, the dollar loses purchasing power and gold prices rise as more investors seek its stability. For example, in the 1970s, interest rates went from 8.98% to 13.82%, Federal Reserve Bank of St. Louis. This decade, gold prices ballooned from $35 to $850, according to data from Nasdaq.

The Fed’s latest Consumer Price Index Report Indications are that while inflation has cooled somewhat, it is unlikely to go away anytime soon.

“The Fed is very worried about a 1970s deflationary scenario where rates were not raised high enough and then inflation returned,” said Mike Borrow, CFA, CPA and managing partner of Fortis Financial Group. “So we think the Fed will want to be sure it has ‘killed’ inflation before cutting rates. That means they will probably err on the side of holding rates longer than many expect.”

Should you buy gold now?

“From a technical perspective, gold is at a major level of resistance as it nears all-time highs. Should gold break that resistance with a significant breakout, that could mean the sky’s the limit,” said Dan Callahan, CFA, partner and chief investment officer at Capasso Planning Partners. .

said, Current price of gold This is just one thing to consider when deciding to invest in precious metals.

Gold is one A valuable part of any portfolio Because of its ability to ride out economic storms and provide steady, reliable returns over time. That makes it one A wise investment at any time. Getting too caught up in price trends can prevent you from enjoying the long-term benefits of gold for your portfolio.

“The attractive part of buying gold right now, especially in any pullback, is the perfect ‘soft landing’ with inflation and gold should perform well in almost any scenario except for a Fed rate hike,” Callahan said.

And if past data is any indication, a “perfect” resolution is nothing to bank on.

Bottom line

While some experts predict gold prices will stay at their current level or rise, there are plenty Reasons to invest in gold Today. As with any investment, it’s important to do your homework and consider your overall goals and risk tolerance.

To start exploring your gold investment options, request a free Investor Kit online today