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The price of gold has already reached several new record highs this year. The uptrend began in March 2024 when the price of gold rose to $2,160 per troy ounce. Since then, the value of gold has reached several other major milestones, including another all-time high of USD 2,472.46 per ounce last month. While the price has weakened somewhat since then – the current Gold price (as of August 12, 2024) is $2,441 per ounce – the price of gold is still up over $500 per ounce year-on-year.
The increase in the value of gold is largely due to Investors flock to the precious metal to protect their portfolios from losses due to economic uncertainty, high inflation and geopolitical risks. The recent price increase has also helped to revive interest in investing in this yellow metal.
If you have thought about it invest in goldyou may be wondering what might happen to the price this fall – especially now that the economic environment has changed. Here’s what experts have to say.
Learn more about how gold can benefit your investment portfolio here.
Gold price forecast for autumn 2024: What experts expect
According to the experts we spoke to, several scenarios are possible regarding the price of gold this fall.
The price of gold could rise
Many of the experts we spoke to believe Gold price could continue to rise this fall due to factors such as geopolitical turbulence and economic uncertainty.
“We have seen the price of gold continue to rise this year in the wake of major geopolitical, economic and societal events. With these tailwinds, I believe the price of gold will continue to rise throughout the fall and into the end of the year,” said Brandon Aversano, CEO and founder of Alloy Market Inc., a precious metals exchange.
The reason for this is that governments and major central banks are buying large amounts of gold and will continue to do so in order to Protection against uncertaintysaid Aversano.
“There is also increased industrial demand for the precious metal. If these large buyers buy gold, the overall supply will decrease, which will lead to a sharp increase in the price of gold,” says Aversano.
“I expect the price of gold to remain stable or rise as we get closer to the election,” said Dr. Peter C. Earle, senior economist at the American Institute for Economic Research.
“If current international conflicts escalate or new ones break out, gold prices could rise. And if at that time the U.S. economy rapidly cools and the market sees the decline as too rapid to be stopped by monetary easing and/or some form of fiscal stimulus, gold prices could reach new all-time highs,” says Earle.
“I believe gold prices could trend higher given ongoing economic uncertainty, inflation concerns and geopolitical risks,” says Ralph Adamo, ChFC, CEO and founder of Integrity Wealth Management.
Find out now about investing in gold and how it could pay off for you.
The price of gold could fall
However, significant interest rate cuts could cause the price of gold to decline or stagnate, as the price of gold tends to rise in a high interest rate environment. Inflation is cooling down and other economic factors change, the Fed is widely expected to begin cutting interest rates – This should happen in SeptemberThis in turn could have an impact on the price of gold.
There is a possibility that other factors could also slow the rise in gold prices. For example, Earle says that gold prices could fall after the presidential election in November, depending on the outcome.
“If there is a clear outcome and a peaceful transfer of power – both relatively speaking – it is likely that the price of gold will settle back at previous support levels,” says Earle.
What factors could have the biggest impact on the price of gold this fall?
There are several factors, including the development in terms of inflationInterest rates and global liquidity that could affect the price of gold this fall, experts say.
“Most people would rightly say that the biggest drivers of gold prices are high interest rates and inflation. However, we believe the global liquidity crisis in the fall will have a disproportionate impact on gold prices,” says Aversano. “With consumer debt at record levels and liquidity shortages, consumers are feeling the impact right now.”
In economically difficult times The price of gold is risingsays Aversano, making it a great asset to sell or invest in.
The conclusion
While many experts expect gold prices to continue rising this fall, it’s difficult to predict what will happen given the many factors involved. “Trying to time these moves right can be risky and result in significant losses for many investors,” says Raman Singh, a certified financial planner.
Therefore, it is important to have a diversified portfoliosays Singh, gold is only one part of your overall long-term strategy. If you decide invest in goldKeep in mind that many experts recommend limiting the share of precious metals in your investment portfolio to a maximum of 10%.
