How high will the price of gold climb this fall? Here's what experts say
The price of gold has climbed steadily since March, and much of that upswing has to do with the current economic climate. With high inflation, elevated interest rates and a looming presidential election, many have invested in gold to protect their wealth.
"During times of uncertainty, gold can serve as a safe haven," says Sean Mason, an investment advisor representative with Fresno Financial Advisors.
This flock toward safety has caused gold to reach record highs several times, eventually surpassing $2,500 per ounce in August. And while inflation has cooled in recent months (and the Fed is expected to make a rate cut soon due to that drop), most experts think gold's price surge will continue through 2024.
Find out more about how adding gold to your portfolio could be a smart move this fall.
How high will the price of gold climb this fall? Here's what experts say
Here's what they have to say about the precious metal's performance as we head into fall.
Demand will remain strong
While there are likely some economic changes coming later this year, experts say many of the factors encouraging a run toward gold will remain the same.
"Growing concerns around the geopolitical landscape, domestic unrest driven by a hypersensitive presidential election year, and heightened anxiety in a challenging economic environment sets a backdrop for consumers to seek refuge in some semblance of safety," Mason says.
Weakness in paper currencies also plays a role in gold's recent run-up, according to Keith Weiner, founder and CEO of Monetary Metals, and that should remain the same as well.
"As people lose confidence in the stability of their national currencies, they turn to gold as a hedge against currency debasement," Weiner says. "Gold is the anti-currency and banking asset, as it has no counterparty."
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Gold will keep climbing
Gold prices may have reached record highs several times this year, but experts don't think they've peaked just yet.
"Nothing I have seen shows gold slowing down any time soon," says Nick Fulton, managing partner of USA Pawn Stores of Mississippi and chairman of the Mississippi Pawnbrokers Association.
In fact, Fulton says his pawn shops are seeing more interest in gold than ever.
"People who have never owned gold are walking into our shops and buying for the first time," Fulton says. "In March 2024, gold was around $2,100 an ounce. At that time, I expected to see gold hit $2,500 by the end of the year, yet here we are trading over that amount with four months to go in 2024."
According to Weiner, we're still in the early stages of what he calls "a significant gold bull market." In turn, there could be a long way to go before gold prices hit their peak.
"While we might see occasional dips, the overarching trend is upward as paper currencies continue to weaken," Weiner says.
Expect $2,600 to $3,000 per ounce
Investment data firm Morningstar projects gold could reach $2,600 per ounce by 2025. But according to Weiner, it may go even higher than that.
"Our model suggests that if we strip out the impact of leveraged futures market speculation, gold's price should be around $2,800, based on current supply and demand," Weiner says. "What's interesting is that as the price climbs, demand doesn't drop off. This demand isn't driven by headlines but by deeper concerns — like debt levels, abuse of monetary policy, and either fear or desire for de-dollarization."
James Cordier, CEO and head trader at Alternative Options, projects that gold prices will reach $3,000 by the end of the year — and the likelihood of a Fed rate cut is just part of the reason. (Studies show that interest rates and gold prices tend to have an inverse relationship).
"With gold being priced in U.S. dollars, the market is extremely focused on any changes the Federal Reserve might be making to interest rate policy," Cordier says. "Lower rates generally translate to a weaker currency, and all of a sudden you have a new form of inflation scare."
The bottom line
There are many and take advantage of its surging price growth. You can purchase physical coins and bars, open a gold IRA, invest in gold stocks and gold ETFs or buy gold futures. If you're not sure what the best route is for your gold investments, talk to a financial advisor or investment professional. They can help you put your funds to best use.
