Getty Images
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.
Start exploring the best gold investments available to you here now.
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.
Bullish Predictions and Potential Factors
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.
It’s important to consider geopolitical uncertainties, inflation and monetary policy, U.S. dollar strength, central bank activity, job market and recession risks, and the electoral cycle as factors that could influence gold prices.
Insights on Recent Economic Shifts
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. Keep an eye on cooling inflation, anticipated interest rate cuts, monetary policy “soft landing,” and market adaptation as potential economic shifts that could impact gold prices.
Strategic Considerations for Gold Investment
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,” advises Chris Yang, co-founder of Coins Value. It’s recommended to limit gold to 10% to 15% of your total portfolio for healthy diversification. Consult with financial advisors before investing in gold to evaluate different options like physical gold or ETFs. Implement a plan and strategy, such as dollar-cost averaging, to navigate price fluctuations and keep your overall financial goals in mind.
