How high will gold prices climb this October? Here's what experts think

Gold has been on a remarkable journey this year, surpassing expectations and hitting new price milestones. Investors have turned to this traditional safe haven to hedge against inflation, pushing prices to new heights.

Even as the economy shifts, the gold rush is showing little signs of slowing. Recent changes, such as cooling inflation and potential interest rate cuts, could boost the precious metal's value in the coming months.

As we head into October, you may wonder, "Just how high could gold prices climb?"

We asked three financial experts to weigh in on gold's potential next month. Their insights shed light on the factors at play and what investors might expect. Whether you're a seasoned gold investor or just a beginner, understanding these predictions could help you make smarter choices with your money.

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How high will gold prices climb this October? 

Experts are generally bullish on gold for October, but they differ in their predictions of how much higher prices might go. With gold already trading above $2,500 per ounce, the question is whether it will continue its upward trajectory or stabilize.

Kenny Zhu, income research analyst at Global X ETFs, highlights the wide range of forecasts. "We've seen bullish predictions from $2,600 to $3,000, while bearish estimates go as low as $2,000 over the medium term," he says. This spread underscores the complex factors influencing gold prices.

Alex Ebkarian, COO and co-founder of precious metals dealer, Allegiance Gold, has an optimistic view. He believes gold could push toward $2,600, especially if interest rates drop. When they're lower, "gold tends to become more [coveted than] bonds," he explains.

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Factors influencing experts' gold price forecasts

A mix of economic, political and global factors will shape gold's price in October, according to the experts we interviewed:

• Geopolitical uncertainties: Ongoing conflicts and global tensions increase gold's appeal as a safe-haven asset.
• Inflation and monetary policy: Gold serves as an inflation hedge, with its value influenced by Federal Reserve actions and interest rate changes.
• U.S. dollar strength: A weakening dollar makes gold more attractive to foreign investors.
• Central bank activity: Large-scale gold purchases by national banks, especially in emerging markets, generate demand.
• Job market and recession risks: Economic uncertainties can drive investors toward alternative assets like gold. An increase in gold's price may be a sign of a struggling economy.
• Electoral cycle: The upcoming U.S. presidential election may lead to policy changes affecting financial markets (and therefore, gold prices).

These factors interplay in complex ways, creating a dynamic environment for gold prices. As Zhu notes, this makes the gold market "volatile and difficult to accurately forecast."

Recent economic shifts and their potential impact

Zhu says that historically, interest rate cuts have been positive for gold prices. "The attractiveness of gold rises relative to interest-paying assets as rates fall," he explains. But he warns that gold prices are already at historic highs, justifying investor caution — especially if we see signs of a pullback in demand at the $2,500 range. Here are some key economic shifts to watch:

• Cooling inflation: "Although there are indications of cooling inflation, it's still way above the target level of the Fed at 2%," notes Chris Yang, co-founder of Coins Value. This could keep demand (and prices) up for gold.
• Anticipated interest rate cuts: The Federal Reserve may gradually lower rates, which could elevate gold's appeal.
• Monetary policy "soft landing": The Fed aims to manage rate cuts without triggering a recession, a unique situation that could affect gold differently than in past rate-cutting cycles.
• Market adaptation: The market has largely adjusted to recent economic fluctuations, potentially setting the stage for gold to move upward in October.

The bottom line

As you consider gold for your portfolio this October, think and act for the long-term. "[Don't get] swayed by short-term price fluctuations," Yang advises. He suggests limiting gold to 10% to 15% of your total portfolio for healthy diversification.

But before you invest in gold, talk to a few financial advisors. They can help you weigh the risks and opportunities of different gold investments, such as physical gold or ETFs, which Yang recommends over riskier options such as gold futures. You could also look into buying and protecting assets such as gold bars and coins in a gold IRA.

Whatever you choose, make a solid plan. Consider using a strategy such as dollar-cost averaging to smooth out price swings. Most importantly, keep your overall financial goals in mind and don't put all your eggs in one golden basket.